Bitcoin Turns Red, Why BTC Could Dive Below DOLLAR39K
Categories: Bitcoin US
Bitcoin started another decline below the $40,000 level against the US Dollar. BTC could extend losses if it stays below the $40,000 resistance zone.
- Bitcoin started another decline after it failed to clear the $40,000 resistance zone.
- The price is now trading below $39,500 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $39,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a major decline if there is a close below the $38,800 level.
Bitcoin Price Gains Bearish Momentum
Bitcoin price settled below the $40,500 level to move into a bearish zone. BTC traded below the $40,000 support level and settled below the 100 hourly simple moving average to move into a bearish zone.
The price even traded below the $39,200 support level. A low is formed near $38,700 and the price is now consolidating losses. An immediate resistance on the upside is near the $39,500 level. There is also a key bearish trend line forming with resistance near $39,500 on the hourly chart of the BTC/USD pair.
The first major resistance is now forming near the $40,000 level. The main resistance sits near $40,500 and the 100 hourly simple moving average. To start a strong upward move, the price must settle above the $40,500 zone and the 100 hourly simple moving average.
More Losses in BTC?
If bitcoin fails to clear the $40,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $39,000 level. The next major support is seen near the $38,800 level. A downside break below the $38,800 zone could send the price towards the $37,500 support zone.