Bitcoin gained bearish momentum and even dropped below $40,000 against the US Dollar. BTC could recover if it manages to climb above the $40,000 pivot level.
- Bitcoin remained in bearish territory and extended its decline below $40K.
- The price is now trading below $40,000 and the 100 hourly simple moving average.
- There is a sharp bearish trend line forming with resistance near $39,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a short-term recovery if there is a move above $40,000.
Bitcoin price is rising at a bearish pace
Bitcoin price struggled to recover above the $43,500 level. BTC started Another retreat It traded below the $42,000 support level.
The bears took control and pushed the price below the $41,000 level. There was also a clear move below the $40,000 support area and the close below 100-hour simple moving average. The price traded as low as $39,240 and is currently consolidating losses.
There is immediate resistance on the upside near the $39,700 level. There is also a sharp bearish trend line forming with resistance near $39,700 on the hourly chart of the BTC/USD pair.
The first major resistance is forming near the $40,000 level. The next resistance might be near $40,200. It is close to the 23.6% Fib retracement level of the recent decline from the $43,415 swing high and from the $39,240 low. A clear move above the $40,000 and $40,200 levels could trigger a short-term recovery wave.
Source: BTCUSD on TradingView.com
In the mentioned case, the price may rise towards the $41,350 resistance area. It is close to the 50% Fib retracement level of the recent decline from the $43,415 swing high and from the $39,240 low.
More losses in bitcoin?
If Bitcoin fails to clear the $40K resistance area, it may continue to move lower. There is immediate support on the downside near the $39,250 level.
The next major support is seen near the $38,880 level. A bearish breakout below the $38,880 support area may increase selling pressure. In the mentioned case, the price could accelerate lower towards the $37,500 level in the upcoming sessions.
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for Bitcoin/USD is now in the oversold territory.
Key support levels – $39,250, followed by $38,880.
Key resistance levels – $39,700, $40,000 and $40,200.