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.
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.