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.