Bitcoin failed to recover above $39,500 and declined against the US Dollar. BTC remains at a risk of more losses and could even test $35,000.
Bitcoin struggled to recover above the $39,500 and $40,000 resistance levels.
The price is trading below $38,000 and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $38,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could extend losses below the $36,000 level in the near term.
Bitcoin Price Remains At Risk
Bitcoin price attempted an upside correction above the $38,800 resistance level. However, BTC struggled to recover above the $39,500 and $40,000 resistance levels.
A high was formed near $39,490 and the price started a fresh decline. There was a clear move below the $38,800 and $38,000 support levels. The price traded below the $37,000 level and the 100 hourly simple moving average.
A low is formed near $36,782 and bitcoin is now consolidating losses. On the upside, an initial resistance is near the $37,420. It is near the 23.6% Fib retracement level of the recent decline from the $39,490 swing high to $36,782 low.
The next key resistance is near the $38,200 level. The 50% Fib retracement level of the recent decline from the $39,490 swing high to $36,782 low is also near the $38,200 zone. More importantly, there is a major bearish trend line forming with resistance near $38,850 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
A clear move above the trend line resistance could send the price to $39,400 and the 100 hourly simple moving average. To move into a positive zone, the price must settle above the $40,000 level.
More Losses in BTC?
If bitcoin fails to start a recovery wave above the $38,850 resistance zone, it could continue to move down. An immediate support on the downside is near the $36,800 zone.
The next major support is seen near the $36,500 level. If there is a downside break below the $36,500 support zone, the price might gain bearish momentum for a move to $35,000.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 50 level.
Major Support Levels – $36,800, followed by $36,500.
Major Resistance Levels – $38,200, $38,500 and $39,500.
