Bitcoin Consolidates Above $37.5K, Why BTC Could Take a Nose

Bitcoin is trading in a bearish zone below $39,000 against the US dollar. BTC could accelerate downwards if it continues to struggle below USD 39,500.

Bitcoin is showing bearish signs below the $40,000 and $39,000 levels. The price is trading below $39,500 and the 100 hourly simple moving average. A pivotal bearish trendline is forming with resistance near $38,550 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could accelerate lower unless the bulls are able to push the price above $39,550.

Bitcoin price continues to struggle

Bitcoin price remained in a bearish zone below the $40,000 support zone. BTC attempted a recovery wave out of the $38,500 zone, but the price remained below the $39,550 resistance.

Recently, the price saw another drop from the USD 39,550 resistance zone and the 100 hourly simple moving average. There was a definite move below the $38,800 and $38,500 support levels. The decline extended below the $38,000 support zone.

A low is formed near $37,625 and the price is now consolidating losses. Bitcoin is slowly moving higher, trading above the Fib retracement level of 23.6% from its recent drop from the $39,499 swing high to $37,625 low.

The first major resistance on the upside is near the $38,550 zone. A crucial bearish trendline is also forming with resistance near $38,550 on the hourly chart of the BTC/USD pair. The trendline coincides with the 50% Fib retracement level from the recent drop from the $39,499 swing high to $37,625 low.

Source: BTCUSD on TradingView.com

If there is a clear move above the USD 38,550 resistance zone, the price could rise further. The next major resistance is near the $39,550 level, above which there are chances of a steady rise. In the mentioned case, the price could even attempt a move above the $40,000 resistance zone.

Lose more in BTC?

If bitcoin does not clear the USD 38,550 resistance zone, it could continue to fall. An immediate support on the downside is near the $37,800 zone.

The next major support is seen near the USD 37,650 level. The key support is near the USD 37,150 level. If there is a downward breach below the $37,150 support, the price could gain bearish momentum. In the said case, it could nosedive to the $36,500 or even $36,000 level.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Key support levels – $37,650, followed by $37,150.

Major resistance levels – $38,550, $39,550 and $40,000.

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