Credit: Original article published by newsbtc.

Bitcoin price started a downside correction from the $41,000 zone against the US Dollar. BTC is struggling to stay above $38,000 and it is likely to continue lower.

  • Bitcoin failed to stay above the $40,000 pivot level and started a fresh decline.
  • The price is struggling to stay above $38,000 and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $38,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to continue lower unless there is a strong move above $39,200.

Bitcoin Price is Showing Bearish Signs

After trading above the $40,000 level, bitcoin price failed to extend gains. BTC traded close to $41,000 and recently started a fresh decline. There was a break below the $40,000 and $39,200 support levels.

The price even spiked below the $38,600 support level and the 100 hourly simple moving average. There was also a break below a key bullish trend line with support near $38,550 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

A low is formed near the $37,400 level and the price is currently recovering. It corrected above the 50% Fib retracement level recent decline from the $39,778 swing high to $37,403 low. It is now struggling to stay above $38,000 and the 100 hourly simple moving average.

There is also a connecting bearish trend line forming with resistance near $38,880 on the same chart. The trend line is close to the 61.8% Fib retracement level recent decline from the $39,778 swing high to $37,403 low.

If there is an upside break above the trend line resistance, the price could start a decent recovery towards $40,000. Conversely, bitcoin price might resume its slide below $38,000. The next key support is near the $37,400 level, below which the price could dive towards the $36,000 support zone.

Fresh Increase in BTC?

If bitcoin manages to stay above $38,000 or $37,500, it could start a fresh increase. An initial resistance is near the $38,800 zone and the bearish trend line.

A clear break above the trend line resistance, and then a follow up move above $39,200 may possibly start a steady increase in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.

Major Support Levels – $38,000, followed by $37,500.

Major Resistance Levels – $38,800, $39,200 and $40,000.

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

#Bitcoin #Crypto #Cryptocurrency

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