Bitcoin failed to test the $40,000 resistance zone. According to technical analysis by NewsBTC’s Aayush Jindal, BTC could decline towards the $36,000 support zone.
Bitcoin Starts A New Drop
Bitcoin tried to move towards the $40,000 resistance zone, but failed to gain momentum above the $39,250 zone. A local top was formed near $39,290 and it started a fresh decline last night. There was a clear move below the $38,000 support level and the 100 hourly simple moving average. There was also a break below a major bullish trend line with support near $37,500 on the hourly chart of the BTC/USD pair.
BTC traded below the 76.4% Fib retracement level of the key move from the $36,665 low to $39,290 high. An initial resistance is near the $37,200 level. The first major resistance is near the $37,500 area. The main hurdle is now forming near the $38,000 zone and the 100 hourly simple moving average. A clear move above the $38,000 resistance could allow it to start a fresh increase. In the stated case, BTC could revisit the $39,250 level.
Does It Drop More?
Jindal says that if Bitcoin fails to start a fresh increase above $38,000, it may continue to decline. According to him, an immediate support is near the $36,650 area. The first major support is seen near the $36,000 zone. This is close to the 1.236 Fib extension level of the main move from the $36,665 low to $39,290 high. Any more losses could see a move towards the $35,500 support area in the near term. A downside break below the $35,500 support zone could push towards $33,200.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD is now gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.
- Main Support Levels – $36,000 then $35,500
- Main Resistance Levels – $37,500, $38,000 and $39,250
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