Bitcoin gains bearish momentum below $40,000. According to technical analysis by NewsBTC’s Aayush Jindal, there is a risk of further declines towards the $37,200 and $36,600 levels.
Bitcoin Continues to Fall
Bitcoin price struggled to stay above the $40,000 support area, but extended its decline below the $39,550 support area and the 100 hourly simple moving average. BTC traded below the 61.8% Fib retracement level of the main move from the $37,160 low to $42,550 low. It is currently showing a few bearish signals below the $39,200 and $39,000 support levels. There is also a key bearish trend line forming with resistance near $39,000 on the hourly chart of the
BTC/USD pair. If there is a clear move above the $39,000 resistance zone, the price could move higher.
The next major resistance is near the $39,550 level and the 100 hourly SMA. Above this, there are chances of a decent recovery wave above the $40,000 resistance zone.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to break through the $39,550 resistance zone, it may continue to move lower. An immediate support on the downside is near the $38,400 area. The next major support is seen near the $38,000 level. The main support is near the recent decline at $37,140. If there is a downside break below the $37,140 support, the price could gain bearish momentum. In the stated case, it could decline hard towards the $36,600 or even $36,000 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 currently below the 50 level.
- Major Support Levels – $38,000 followed by $37,140
- Major Resistance Levels – $39,000, 39,550 and $40,000
