BTC is gaining bearish momentum and could drop to the $35,000 support, according to technical analysis by Aayush Jindal of NewBTC.
Bitcoin Continues to Fall
Bitcoin gained bearish momentum below the $39,000 level and the 100 hourly simple moving average after failing to stay above the $42,000 support. It even dropped below the $38,000 support level and slumped as low as $37,801. The current price action suggests that there are chances of more declines below $37,800.
An upside correction might face resistance near the $38,500 level. This is near the 23.6% Fib retracement level of the drop from the $41,920 low to $37,801 low. There is also a key bearish trend line forming with resistance near $38,500 on the hourly chart of the BTC/USD pair. The first important resistance is near the $39,800 level. This is close to the 50% retracement level of the drop from the $41,920 high to $37,801 low.
$39,800 Significant
A clear move above the trendline resistance followed by $39,800 could start a decent uptrend. The next major resistance for the bulls is likely near the $40,500 level and the 100 hourly simple moving average.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to break past the $38,500 resistance zone, it may continue to move lower. An immediate support on the downside is near the $37,800 area. The next major support is seen near the $37,400 level. If there is a downside break below the $37,400 support, the price could start a major decline. In the stated case, there is a risk of a move towards the $35,000 level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now close to the 30 level.
- Major Support Levels – 37,800 then $37,400
- Major Resistance Levels – 38,500, 39,800 and 40,000
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