Bitcoin started a decline after struggling to clear the $38,800 resistance zone. According to technical analysis by NewsBTC’s Aayush Jindal, it could drop below the $35,000 support level.
Bitcoin Starts A New Drop
Bitcoin failed to break through the $38,800 resistance zone. A high was formed near $38,719 and it started a fresh decline from there. The price declined below the 50% Fib retracement level of the upward move from the $35,561 high to $38,719 high. Moreover, there was a break below a key bullish trend line with support near $37,650 on the hourly chart of the BTC/USD pair. The pair traded below the $37,200 level and the 100 hourly simple moving average. BTC is currently trading around $37,000.
An initial resistance is near the $37,400 level and the 100 hourly SMA. The first major resistance is near the $38,000 zone. The main resistance is still near the $38,800 area. An upside break above the $38,800 resistance could start a decent upside move. The next key resistance is near the $40,000 level, where the bulls could gain strength.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to start a fresh increase above $38,000, it may continue to decline. An immediate support, according to him, is near the $36,000 zone. The first major support is seen near the $35,500 zone. A downside break below the $35,500 support zone could push the price towards the $34,000 support zone.
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 currently below the 50 level.
- Main Support Levels – 36,500 then $35,500
- Main Resistance Levels – $37,400, $38,000, and $38,800
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