Bitcoin continues to struggle. According to technical analysis by NewsBTC’s Aayush Jindal, bearish momentum could gain if it continues struggling below $39,500.
Bitcoin Struggles
Bitcoin price continues to struggle below the $40,000 support zone. BTC attempted a recovery wave from the $38,500 region but remained below the $39,550 resistance.
BTC broke a fresh decline from the $39,550 resistance zone and the 100 hourly simple moving average and is consolidating losses after forming a bottom near $37,625. It is trading above the 23.6% Fib retracement level of the recent decline from the $39,499 low to $37,625 high.
There is also a key bearish trend line forming with resistance near $38,550 on the hourly chart of the BTC/USD pair. The trend line coincides with the 50% Fib retracement level of the recent decline from the $39,499 high to $37,625 high.
If there is a clear move above the $38,550 resistance zone, the price could move higher. The next major resistance is near the $39,550 level, above which there are good chances of a rise. In the stated case, the price may even attempt to climb above the $40,000 resistance zone.
Will Bitcoin Drop?
Jindal says that if Bitcoin fails to break through the $38,550 resistance zone, it may continue to move lower. An immediate support is near the $37,800 zone. The next major support is seen near the $37,650 level. The main support is near the $37,150 level. If there is a downside break below the $37,150 support, it could gain bearish momentum. In the stated case, it could decline towards the $36,500 or even $36,000 level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now losing momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
- Major Support Levels – 37,650 followed by $37,150
- Major Resistance Levels – 38,550, 39,550 and 40,000
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