More On: bitcoin
Bitcoin has begun a new decline against the US dollar, falling below $40,000 for the first time. BTC is losing ground and may fall as low as $35,000 in the near future.
- Bitcoin has begun a new decline below $40,000 and $39,000.
- The price is currently trading below $40,000 as well as the 100 hourly simple moving average.
- On the hourly chart of the BTC/USD pair, a key bearish trend line is forming with resistance near $38,500. (data feed from Kraken).
- Unless the pair recovers above $39,000, it may continue to fall towards $35,000.
Bitcoin's price continues to fall.
Bitcoin's price began a new major decline after failing to hold above the $42,000 support level. BTC breached several key supports near $40,000, ushering it into a bearish zone.
The price fell below the $39,000 level and the 100 hourly simple moving average, gaining bearish momentum. It even fell below the $38,000 support level, reaching as low as $37,801. The current price action suggests that there will be more downsides below $37,800.
If the price of bitcoin rises, it may encounter resistance near the $38,500 level. It is near the 23.6 percent Fib retracement level of the recent drop from the $41,920 swing high to the $37,801 low.
On the hourly chart of the BTC/USD pair, a key bearish trend line is forming with resistance near $38,500. The first significant resistance is located near $39,800. It is nearing the 50% Fib retracement level of the recent drop from the $41,920 swing high to the $37,801 low.
A clear break above the trend line resistance, followed by a break above $39,800, could kick-start a steady increase. The bulls' next major resistance could be near the $40,500 level and the 100 hourly simple moving average.
More Bitcoin losses?
If bitcoin fails to break through the $38,500 resistance level, it may continue to fall. On the downside, there is immediate support near $37,800.
The next significant support is seen near $37,400. If the price falls below the $37,400 support level, it may begin a major decline. In the aforementioned scenario, there is a risk of a move towards the $35,000 level.
Indicators of technical significance:
Hourly MACD – The MACD is now accelerating into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for Bitcoin/USD is now close to 30.
Major Support Levels begin at $37,800 and progress to $37,400.
$38,500, $39,800, and $40,000 are the major resistance levels.
** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.