Bitcoin started a strong decline from the $40,000 resistance against the US Dollar. BTC broke the key support at $37,500 to move into a bearish zone.
- Bitcoin started a strong decline below the $37,500 and $36,500 levels.
- The price is now trading below $37,500 and the 100 hourly simple moving average.
- There was a break below the major uptrend line with support near $39,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may accelerate lower below the $35,000 support area in the near term.
Bitcoin price drops 8%
Bitcoin price struggled to clear $40,000 resistance area. BTC formed a high near $40,029 and started a new low. There was a significant drop below the $38,500 and $38,000 levels.
There was a break below the major uptrend line with support near $39,250 on the hourly chart of the BTC/USD pair. The pair even fell below the key support level of $37,500 and settled below the level 100-hour simple moving average.
Finally, it tested the $35,500 area and traded as low as $35407. It is now consolidating losses near the $36,200 level. On the upside, Bitcoin price is now facing resistance near the $36,500 level.
The 23.6% Fib retracement level of the downside move from the $40,029 high to $35,407 low is also near the $36,500 region. The next major resistance could be near the recent breakdown area at $37,500, where the bears may take a stand.
Source: BTCUSD on TradingView.com
The 50% Fib retracement level of the downside move from the $40,029 high to the $35,407 low is also near the $37,500 region. To start a new increase, the price must settle above the $37,500 level.
More losses in bitcoin?
If Bitcoin fails to clear the $36,500 resistance area, it may continue to move lower. There is immediate support on the downside near the $36,000 level.
The next major support appears near the $35,500 level or the recent low. A break-down below the $35,500 support level could trigger another sharp decline. The next major support could be $34,200.
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 – $36,000, followed by $35,500.
The main resistance levels are $36,500, $37,200 and $37,500.