The price of bitcoin struggled to rise beyond $40,000 and continued to fall against the US dollar. If BTC remains below $40,000, it might go below $38,500.
- Bitcoin’s drop below the $40,000 and $39,200 support levels has continued.
- The price has dropped below $40,000 and the hourly simple moving average of 100.
- On the hourly chart of the BTC/USD pair, a strong negative trend line is forming with resistance near $39,250. (data feed from Kraken).
- To begin a new uptrend in the short term, the pair needs break through $39,250 and $40,000.
The Value of Bitcoin is Fluctuating.
From a high of almost $42,000, the price of bitcoin has begun a new downward trend. BTC has moved into a short-term negative zone after breaking through the crucial $40,500 support level.
Even the 100 hourly simple moving average and the $40,000 barrier were breached by the price. It even went as low as $38,711 after breaking through the $39,200 support zone. The price has now stabilized over the $38,700 mark.
Near the $39,250 mark, there is some early resistance. On the hourly chart of the BTC/USD pair, a strong negative trend line is forming with resistance near $39,250. Near the $39,600 mark, the first big resistance exists. It’s around the 23.6 percent Fib retracement level of the current drop from the $42,630 swing high to the $38,711 low.
Near the $40,500 level and the 100 hourly simple moving average, the primary resistance is emerging. The latest fall from the $42,630 swing high to the $38,711 low is nearing the 50 percent Fib retracement level.
If there is an upside break above the trend line and then $40,000, bitcoin could rise towards $40,500. The next major resistance on the upside is near the $41,200 zone.
More Bitcoin losses?
Bitcoin may continue to fall if it fails to break through the $39,250 and $40,500 resistance levels. On the downside, $38,700 serves as an initial support level.
The first big support level is presently around $38,500. A decisive breach to the negative below the $38,500 support level might embolden the bears to extend their losses. The next big support zone is around $37,000.
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.
Major Support Levels – $38,500, followed by $37,000.
Major Resistance Levels – $39,250, $40,000 and $40,500.
