Bitcoin failed to make progress above $40,700 and fell against the US Dollar. BTC traded to a new weekly low and may struggle to climb above $39,200.
- Bitcoin started a new decline after it failed to clear the major resistance area of $40,700.
- The price is now back below $39,000 and the 100 hourly simple moving average.
- There was a break below the connecting uptrend line with support near $39,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct higher, but the positives could be capped near $38,800 or $39,200.
Bitcoin price drops sharply
Bitcoin price attempted a clear move above the $40,500 level. However, BTC failed to clear the file The $40,700 and $40,750 resistance levels.
A top formed near $40776 and the price reacted to the downside. There was a sharp drop below the $40,000 level and Simple moving average per 100 hours. Besides, there was a break below the connecting uptrend line with support near $39,500 on the hourly chart of the BTC/USD pair.
Bitcoin is now back below $39,000 and the 100 hourly simple moving average. It traded as low as $37,672 and is currently consolidating losses.
It is testing the 23.6% Fib retracement level of the recent decline from the $40,776 high to $37,672 low. There is an immediate resistance on the upside near the $38,800 level. The next major resistance might be near the $39,200 area.
The 50% Fib retracement level of the recent decline from $40,776 high to $37,672 is also near the $39,250 area. The major resistance is now forming near the $39,550 level and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
If there is a clear move above the $39,200 and $39.550 levels, the price may start a decent increase. In the mentioned case, the price could surpass the $40,000 resistance. The next major resistance might be near the $40,700 area.
More losses in bitcoin?
If Bitcoin fails to clear the $39,200 resistance area, it may continue to move lower. There is immediate support on the downside near the $37,650 level.
The next major support appears near the $37,500 level. A close below the $37,500 support area could start another decline. In the aforementioned case, the price may drop to $36,200.
Hourly MACD – The MACD is slowly losing its momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.
Key support levels – $37,650, followed by $37,500.
The main resistance levels are $39,200, $39,550, and $40,000.