Bitcoin is resuming the decline, and here’s why BTC could drop to a new monthly low

Bitcoin price is showing bearish signals and is trading at less than $ 40,000 against the US dollar. BTC is likely to extend its losses below $ 34,000 and $ 32,000 in the near term.

  • Bitcoin failed to stabilize above $ 40,000 and began a new plunge to below $ 38,000.
  • The price is now trading well below the $ 40,000 and the 100 simple moving average (4 hours).
  • There is a major downtrend line forming with resistance near $ 37,500 on the 4-hour chart for BTC / USD (data feed from Kraken).
  • The pair is likely to continue declining as long as it is trading below $ 38,000 and $ 40,000.

Bitcoin price turns red

Last week, Bitcoin’s price started a Decent recovery Over $ 35,000 against the US dollar. BTC / USD broke the $ 38,000 resistance level.

However, the price failed to stabilize above the $ 40,000 level and remained well below the 100 SMA (4 hours). A high was formed near $ 40,971 and price started at New drop. There was a breakout below the $ 38,000 support level.

Bitcoin traded below the 50% Fibonacci retracement level of the upward move from $ 31,296 low to as high as $ 40,971. There is also a major downtrend line forming with resistance near $ 37,500 on the 4-hour chart of the Bitcoin / USD pair.

Source: BTCUSD on

The pair is now testing the 76.4% Fibonacci retracement level for the upside move from the swing low at $ 31296 to $ 40971. If there is a break down below the support levels of $ 34,000 and $ 33,500, the price is likely to accelerate lower.

The next major support is located near the USD 31,250 level, which is likely to test the price below the USD 30,000 support level in the near term.

Upsides Ltd in BTC?

If Bitcoin stays above $ 33,500, it could start a new rally. Initial resistance is found on the upside near the $ 36,500 level.

First major resistance near the trend line at $ 38,000. The main resistance is now near $ 40,000. The close should be above $ 40,000 to start a steady increase in the near term. The next major hurdle could be $ 45,000.

Technical indicators

4 Hours MACD – The MACD of BTC / USD is gaining momentum in bearish territory.

4-hour RSI (Relative Strength Index) – the Bitcoin / USD RSI is now well below the 50 level.

Major Support Level – $ 33,500

Main resistance level – $ 38,000

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