Bitcoin gained bearish momentum below $40,000 against the US dollar. BTC is at risk of more downsides towards the USD 37,200 and USD 36,600 levels.
Bitcoin started another decline below the $40,000 and $39,000 levels. The price is trading below $39,000 and the 100 hourly simple moving average. A major bearish trendline is forming with resistance near $39,000 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could continue to fall unless the bulls can push the price above $39,550.
Bitcoin price prolongs decline
Bitcoin price struggled to stay above the $40,000 support zone. As a result, BTC extended its decline below the $39,550 support zone and the 100 hourly simple moving average.
The price traded below the 61.8% Fib retracement level of the key rise from the $37,160 swing low to $42,550 swing high. It is now showing some bearish signs below the USD 39,200 and USD 39,000 support levels.
Bitcoin is also testing the 76.4% Fib retracement level from the key rise from the $37,160 swing low to $42,550 swing high at $38,430. If there is a small recovery wave, the price may face resistance near the $38,850 level. The first major resistance on the upside is near the $39,000 zone.
A major bearish trendline is also forming with resistance near $39,000 on the hourly chart of the BTC/USD pair. If there is a clear move above the $39,000 resistance zone, the price could rise further.
Source: BTCUSD on TradingView.com
The next major resistance is near the $39,550 level and the 100-hour SMA, above which there are chances of a steady wave of recovery above the $40,000 resistance zone.
Lose more in BTC?
If bitcoin does not clear the USD 39,550 resistance zone, it could continue to fall. An immediate support on the downside is near the $38,400 zone.
The next major support is seen near the $38,000 level. The main support is near the latest swing low at $37,140. If there is a downside breach below the $37,140 support, the price could gain bearish momentum. In the mentioned case, it could plunge to the $36,600 or even $36,000 level.
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $38,000, followed by $37,140.
Major Resistance Levels – $39,000, $39,550 and $40,000.