Bitcoin price started a new decline after it failed to stay above $40K against the US Dollar. BTC is moving lower and may even drop to $35,000 in the near term.
- Bitcoin has started a new decline from well above the $40,000 pivot level.
- The price is now trading well below $39,000 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $38,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to continue declining if it fails to stay above the $37,200 support area.
Bitcoin price extends lower
Bitcoin fails to stay above the key $40,000 support area And I started a new low. BTC broke the $39,500 and $38,500 support levels to move into a short-term downside zone.
The price traded below the 50% Fib retracement level of the upward move from the swing low $34822 to $41,380. They are now trading for well under $39,000 and Simple moving average per 100 hours. There is also a major bearish trend line forming with resistance near $38,500 on the hourly chart of the BTC/USD pair.
There is immediate support on the downside near the $37,200 level. It is near the 61.8% Fib retracement level of the upward move from the $34,822 swing low to $41,380.
Source: BTCUSD on TradingView.com
If there is a downside break below the $37,200 support, the price may struggle to stay above the $36,500 support level. Any further losses may open the door to a move towards the $35,000 support area in the near term.
New surge in bitcoin?
If bitcoin stays above the $37,200 support level, it may start a new rally. There is an initial resistance on the upside near the $38,200 level.
The first major resistance is near the $38,500 level and the descending trendline. A successful break above the trend line could push the price towards the $39,500 resistance area and the 100-hour SMA. It should close above the 100-hourly simple moving average for a fresh increase above the $40,000 resistance area in the upcoming sessions.
Hourly MACD – The MACD is slowly moving into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.
Key support levels – $37,200, followed by $36,500.
The main resistance levels are $38,200, $38,500 and $40K.