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

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Cryptocoins News / NewsBTC 164 Views

Bitcoin started another decline below the $40,000 level against the US Dollar. BTC could extend losses if it stays below the $40,000 resistance zone.

  • Bitcoin started another decline after it failed to clear the $40,000 resistance zone.
  • The price is now trading below $39,500 and the 100 hourly simple moving average.
  • There is a key 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 major decline if there is a close below the $38,800 level.

Bitcoin Price Gains Bearish Momentum

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

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

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

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

Bitcoin Price

Source: BTCUSD on TradingView.com

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

More Losses in BTC?

If bitcoin fails to clear the $40,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $39,000 level.

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

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.

Major Support Levels – $39,000, followed by $38,800.

Major Resistance Levels – $39,500, $39,800 and $40,000.

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