Bitcoin failed to recover above $39,500 and continued to decline. It risks more losses and could test $35,000, according to technical analysis by NewsBTC’s Aayush Jindal.
Bitcoin is at Risk
Bitcoin struggled to recover above the $39,500 and $40,000 resistance levels but failed and started a decline after forming a local top near $39,490. BTC declined to around $36,782. Initial resistance is near $37,420. This is close to the 23.6% Fib retracement level of the recent drop from the $39,490 high to $36,782 low.
The next key resistance is near the $38,200 level. This is the 50% Fib retracement level of the drop from the $39,490 high to $36,782 low, which is also near the $38,200 zone. More importantly, there is a major bearish trend line forming with resistance near $38,850 on the hourly chart of the BTC/USD pair. A clear move above the trendline resistance
could send BTC to $39,400 and the 100 hourly simple moving average. For the situation to be considered positive, the price must rise above the $40,000 level.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to start a recovery wave above the $38,850 resistance area, it may continue to move lower. The next major support is seen near the $36,500 level. If there is a downside break below the $36,500 support zone, the price could gain bearish momentum for a move to $35,000.
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 well above the 50 level.
- Major Support Levels – 36,800 followed by $36,500
- Major Resistance Levels – $38,200, 38,500 and 39,500
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