Bitcoin (BTC) Price Analysis: What’s Next? – March 7, 2022

BTC gains bearish momentum and could drop to $35,000 support, according to technical analysis by NewBTC's Aayush Jindal
 Bitcoin (BTC) Price Analysis: What’s Next?  – March 7, 2022
READING NOW Bitcoin (BTC) Price Analysis: What’s Next? – March 7, 2022

BTC is gaining bearish momentum and could drop to the $35,000 support, according to technical analysis by Aayush Jindal of NewBTC.

Bitcoin Continues to Fall

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Bitcoin gained bearish momentum below the $39,000 level and the 100 hourly simple moving average after failing to stay above the $42,000 support. It even dropped below the $38,000 support level and slumped as low as $37,801. The current price action suggests that there are chances of more declines below $37,800.

An upside correction might face resistance near the $38,500 level. This is near the 23.6% Fib retracement level of the drop from the $41,920 low to $37,801 low. There is also a key bearish trend line forming with resistance near $38,500 on the hourly chart of the BTC/USD pair. The first important resistance is near the $39,800 level. This is close to the 50% retracement level of the drop from the $41,920 high to $37,801 low.

$39,800 Significant

A clear move above the trendline resistance followed by $39,800 could start a decent uptrend. The next major resistance for the bulls is likely near the $40,500 level and the 100 hourly simple moving average.

Will Bitcoin Drop More?

Jindal says that if Bitcoin fails to break past the $38,500 resistance zone, it may continue to move lower. An immediate support on the downside is near the $37,800 area. The next major support is seen near the $37,400 level. If there is a downside break below the $37,400 support, the price could start a major decline. In the stated case, there is a risk of a move towards the $35,000 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 now close to the 30 level.
  • Major Support Levels – 37,800 then $37,400
  • Major Resistance Levels – 38,500, 39,800 and 40,000

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