Bitcoin Bears Keep Pushing, Why There’s Risk of More Losses


Bitcoin once again failed to clear the $41,500 resistance area against the US Dollar. BTC could extend its losses if there is a clear move below the $39,200 support area.

  • Bitcoin made another attempt to increase the speed above the $41,500 level but it failed.
  • The price is now trading below $41,000 and the 100 hourly simple moving average.
  • There was a break below the major uptrend line with support near $40,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair may extend its decline if there is a daily close below the $40,000 support area.

Bitcoin price gains

Bitcoin price corrected above the $41,000 resistance area. BTC liquidated the $41,400 level and tried to move clearly above $41,500 resistance area.

However, the bears were active near the $41,500 level. A high formed near $41,548 and the price started a new decline. There was a clear move below the $41,000 support area. The price fell below the 50% Fib retracement level of the recent increase from the swing low $39,269 to $41,548.

Besides, there was a break below the major uptrend line with support near $40,400 on the hourly chart of the BTC/USD pair. The pair is now trading under $41,000 and 100-hour simple moving average.

It also climbed below the 76.4% Fib retracement level of the recent increase from the swing low $39,269 to $41,548. There is an immediate resistance on the upside near the $40,200 level. The next major resistance might be the $40,400 and the 100 hourly SMA.

Bitcoin price

Source: BTCUSD on TradingView.com

If the bulls manage to surpass the $40,400 and $40,500 resistance levels, the price may start a decent increase. In the mentioned case, the price may rise towards the $41,000 resistance area. Any further gains could set the pace for a move towards the $41,500 key level in the near term.

More losses in bitcoin?

If Bitcoin fails to clear the $40,400 resistance area, it may start dropping again. There is immediate support on the downside near the $39,650 level.

The next major support is seen near the $39,250 level. A downside breakout below the $39,250 support area could accelerate losses. In the mentioned case, the price could drop towards the level of $38,500 or even $37,750.

Technical indicators:

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 – $39.650, followed by $39,250.

The key resistance levels are $40,400, $41,000, and $41,500.



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