Bitcoin

Bitcoin turns red, which is why BTC could resume its decline


Bitcoin price started a new decline after it failed to cross $38,000 against the US Dollar. BTC is now struggling below $36,500 and is still at risk of further losses.

  • Bitcoin has started a new decline from above the $38,000 support level.
  • The price is now trading well below $37,000 and the 100 hourly simple moving average.
  • There is a crucial bearish trend line forming with resistance near $36,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to continue declining if it fails to surpass the $36,200 and $36,500 resistance levels.

Bitcoin price faces resistance

Bitcoin failed to continue rising above the $38,000 resistance and started to… new low. BTC broke the $36,500 and $35,500 support levels to move into a descending zone.

The price even broke the $34,000 support level and settled below the level Simple moving average per 100 hours. It traded as low as $33,373 and recently started an upward correction. Bitcoin managed to recover above the $34,000 and $35,000 resistance levels.

There was also a break above the 50% Fib retracement level of the recent decline from the swing high $36,463 to $33,373. However, the price is facing significant resistance near the $36,000 region.

Source: BTCUSD on TradingView.com

It is still trading well below $37,000 and the 100 hourly simple moving average. The 76.4% Fib retracement level of the recent decline from $36,463 to the $33,373 low is acting as resistance. Besides, there is a crucial bearish trend line forming with resistance near $36,400 on the hourly chart of the BTC/USD pair.

To move into a positive area, the price must clear the trend line resistance, $36,500 and the 100 hourly SMA. The next major resistance on the upside is at $38,000.

More losses in bitcoin?

If Bitcoin fails to clear the trend line resistance and $36,500, it may continue to decline. There is immediate support on the downside near the $35,000 level.

The next major support is near the $34,000 level. A breakout below $34,000 could push the price to $33,000. Any further losses may open the door to a move towards the $32,000 support area in the near term.

Technical indicators:

Hourly MACD – The MACD is slowly moving into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for Bitcoin/USD is struggling to stay above the 50 level.

Key support levels – $35,000, followed by $34,000.

The key resistance levels are $36,200, $36,500 and $38,000.



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