Bitcoin, which gained downward momentum, saw below $ 40,000. According to technical analysis by NewsBTC’s Aayush Jindal, BTC could rally if it manages to break above the $40,000 pivot level.
Bitcoin Continues to Drop
Bitcoin failed to recover above the $43,500 level and started a fresh decline. The bears managed to push the price below the $40,000 support zone and there was a close below the 100 hourly simple moving average. The price settled as low as $39,240 and it is currently consolidating losses. There is a key bearish trend line forming with resistance near $39,700 on the hourly chart of the
BTC/USD pair. The first major resistance is formed near the $40,000 level. The next resistance could be near $40,200. This is close to the 23.6% Fib retracement level of the recent decline from the $43,415 high to $39,240 high. A clear move above the $40,000 and $40,200 levels could start a short-term recovery wave. In the stated case, the price could rally towards the $41,350 resistance area. This is close to the 50% Fib retracement level of the recent decline from the $43,415 low to $39,240 high.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to break past the $40,000 resistance zone, it may continue to move lower. An immediate support on the downside is near the $39,250 level. The next major support is seen near the $38,880 level. A downside break below the $38,880 support zone could increase selling pressure. In the stated case, the price could decline towards the $37,500 level in the coming sessions.
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 currently in the oversold territory.
- Major Support Levels – $39,250 followed by $38,880
- Major Resistance Levels – $39,700, 40,000 and 40,200
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