Bitcoin Turns Bearish, Keeps Control Below $40K
Bitcoin started a sharp decline below the $40,000 support against the US dollar. BTC could recover, but gains may be limited to above $38,000.
Bitcoin started a major decline below the $40,000 and $38,000 support levels. The price is now trading below $38,000 and the 100 hourly simple moving average. There is a major bearish trendline with resistance near $36,500 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could continue declining if there is a break below the USD 34,000 support.
Bitcoin Price Extends Losses
Bitcoin price started a major decline below the $42,000 and $40,000 support levels. BTC gained pace below the $38,000 level to move further into a bearish zone.
It traded as low as $34,007 and is currently consolidating losses. It is now trading below $38,000 and the 100 hourly simple moving average.
On the upside, an initial resistance is near the $36,200 level. There is also a major bearish trendline with resistance near $36,500 on the hourly chart of the BTC/USD pair. The trendline is near the 23.6% Fib retracement level from the recent drop from the $43,500 swing high to $34,007 low.
The first major resistance is near the $36,800 level. A breach upward above the $36,800 resistance could start a steady wave of recovery towards $38,000. The next key resistance is near the $40,000 level, above which the bulls could target a test of $41,200.
Source: BTCUSD on TradingView.com
An intermediate resistance is near the 50% Fib retracement level from the recent drop from the $43,500 swing high to $34,007 low. Further gains may require a move into the $42,500 resistance zone.
Lose more in BTC?
If bitcoin fails to start a fresh rise above $36,500, it could trigger another drop. An immediate support on the downside is near the $34,500 zone.
The first major support is seen near the $34,000 zone. A downward breach below the $34,000 support zone may set off another big drop. The next major support is near $32,500, below which the price could dip even below the $32,000 zone.
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.
Key support levels – $34,500, followed by $34,000.
Major resistance levels – $36,250, $36,500 and $38,000.