The price of bitcoin is showing signs of slowdown and is trading below $ 40,000 against the US dollar. BTC is likely to expand losses in the short term to $ 34,000 and below $ 32,000.
- Bitcoin failed to settle above $ 40,000 and started a new decline below $ 38,000.
- The price is now trading well below $ 40,000 and below the 100 simple moving average (4-hour).
- The 4-hour chart on the BTC / USD pair has a major bearish trend line, with resistance near $ 37,500 (data feed from Kraken).
- As long as it is trading below $ 37,000 and below $ 60,000, the pair is likely to continue lower.
Bitcoin price is red
Last week, the price of bitcoin started good recovery Above the $35,000 level against the US Dollar. The BTC/USD pair even broke the $38,000 resistance level.
However, the price failed to settle above the $40,000 level and remained well below the 100 simple moving average (4-hours). A high near $ 40,971 was formed and the price started fresh fall. There was a break below the $38,000 support level.
Bitcoin traded higher from the 50% Fibonacci retracement level from the $31,296 low to $40,971 high. A major bearish trend line is also forming, with resistance near $ 37,500 on the 4-hour chart of the BTC / USD pair.
Source: BTCUSD on TradingView.com
The pair is now testing 76.4% Fibonacci retracement, moving upward from a low of $ 31,296 to a high of $ 40,971. If the price breaks below the support levels of $ 34,000 and $ 33,500, the price is likely to be lower.
The next major support is near $ 31,250, below which the price could test a support level of $ 30,000 in the short term.
Upsides Ltd in BTC?
If bitcoin remains stable above the $ 33,500 level, it could start a new rise. The initial resistance upward is near the $ 36,500 level.
The first major resistance is near the trend line and $ 38,000. The main resistance is now closer to $ 40,000. To start a steady increase in the near term one must be close to above $ 40,000. The next major barrier could be $ 65,000.
4-hour MACD – MACD for BTC / USD is gaining momentum in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for BTC / USD is now well below the 50 level.
Key Support Level – $ 33,500
Major Resistance Level – $ 37,000