Bitcoin failed to gain pace above $ 40,700 and declined against the US Dollar. BTC traded to a new weekly low and might struggle to climb above $ 39,200.
- Bitcoin started a fresh decline after it failed to clear the key $ 40,700 resistance zone.
- The price is now back below $ 39,000 and the 100 hourly simple moving average.
- There was a break below a connecting bullish trend line with support near $ 39,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct higher, but upsides might be capped near $ 38,800 or $ 39,200.
Bitcoin Price Declines Sharply
Bitcoin price attempted a clear move above the $ 40,500 level. However, BTC failed to clear the $ 40,700 and $ 40,750 resistance levels.
A high was formed near $ 40,776 and the price reacted to the downside. There was a sharp decline below the $ 40,000 level and the 100 hourly simple moving average. Besides, there was a break below a connecting bullish trend line with support near $ 39,500 on the hourly chart of the BTC/USD pair.
Bitcoin is now back below $ 39,000 and the 100 hourly simple moving average. It traded as low as $ 37,672 and is currently consolidating losses.
It is testing the 23.6% Fib retracement level of the recent decline from the $ 40,776 swing high to $ 37,672 low. An immediate resistance on the upside is near the $ 38,800 level. The next key resistance could be near the $ 39,200 zone.
The 50% Fib retracement level of the recent decline from the $ 40,776 swing high to $ 37,672 low is also near the $ 39,250 zone. The main resistance is now forming near the $ 39,550 level and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
If there is a clear move above the $ 39,200 and $ 39,550 levels, the price could start a decent increase. In the stated case, the price could even surpass the $ 40,000 resistance. The next major resistance may perhaps be near the $ 40,700 zone.
More Losses in BTC?
If bitcoin fails to clear the $ 39,200 resistance zone, it could continue to move down. An immediate support on the downside is near the $ 37,650 level.
The next major support is seen near the $ 37,500 level. A close below the $ 37,500 support zone might start another decline. In the stated case, the price might drop to $ 36,200.
Technical indicators:
Hourly MACD – The MACD is slowly losing 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 – $ 37,650, followed by $ 37,500.
Major Resistance Levels – $ 39,200, $ 39,550 and $ 40,000.
