Bitcoin Turns Red, Why BTC Could Dive Below $39K


Bitcoin has started falling again below the $40,000 level against the US Dollar. BTC could extend its losses if it stays below the $40,000 resistance area.

  • Bitcoin started falling again after it failed to clear the $40,000 resistance area.
  • The price is now trading below $39,500 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $39,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a significant decline if there is a close below the $38,800 level.

Bitcoin price is gaining bearish momentum

Bitcoin price stabilized below $40,500 to move to A descending zone. Bitcoin traded below the $40,000 support level and settled below the 100 hourly simple moving average, moving into a bearish zone.

The price even traded below the $39,200 support level. The bottom formed near $38,700 and the price is now consolidating losses. There is an immediate resistance on the upside near the $39,500 level. There is also a major bearish trend line forming with resistance near $39,500 on the hourly chart of the BTC/USD pair.

The next major resistance could be $39,700 or the 23.6% Fib retracement level of the recent decline from $42,950 to the low of $38,700.

The first major resistance is now forming near the $40,000 level. The main resistance is near $40,500 and 100-hour simple moving average. To start a strong bullish move, the price must settle above the $40,500 area and the 100 hourly simple moving average.

Bitcoin price

Source: BTCUSD on TradingView.com

In the mentioned case, the price could surpass the 50% Fib retracement level of the recent decline from $42,950 to the high at $38,700.

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 $39,000 level.

The next major support is seen near the $38,800 level. A break-down below the $38,800 area could send the price towards the $37,500 support area.

Technical indicators:

Hourly MACD – The MACD is slowly 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 – $39,000, followed by $38,800.

Key resistance levels – $39,500, $39,800 and $40K.



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