Cryptocurrency News

This is why there is a risk of fresh decline in BTC


The price of bitcoin failed to clear the major $ 40,000 resistance zone against the US dollar. BTC is improving profits and is still at risk of more losses towards $ 36,000 or $ 34,000.

  • Bitcoin is struggling to clear resistance levels of $ 40,000 and $ 40,500.
  • The price currently has a $ 37,000 support and a 100-hour simple moving average.
  • On the BTC / USD pair’s hourly chart there was a break below a short-term contraction triangle with support near $ 38,400 (data feed from Kraken).
  • If it breaks the support level of $ 37,000 and the 100-hour moving average, the pair is likely to move lower.

Bitcoin price struggles below $ 40K

Bitcoin broke $ 40,000 resistance And enhanced its recovery wave. BTC also cleaned the $ 40,500 level and closed well above the 100-hour simple moving average.

However, the bulls failed to achieve strength above $ 40,500. A high near $ 40,923 was formed and the price plummeted. Broken below the $ 40,000 support level. In addition, the BTC / USD pair had a break at the bottom of a short-term contraction triangle with support near $ 38,400 on the hourly chart.

The pair gained upward momentum from a low of $ 36,472 to a high of $ 40,923, well below the 50% Fibonacci retracement level. Bitcoin currently has support of $ 37,000 and 100-hour moving average.

Source: BTCUSD on TradingView.com

A 76.4% Fibonacci retreatment from a low of $ 36,472 to a high of $ 40,923 is also serving as a support area. On the upside, the immediate resistance is near the broken triangle support at $ 38,500. The first major resistance is near $ 39,500. The main resistance is still near the $ 40,000 area. A proper close above the $ 40,000 resistance zone could initiate a strong surge.

More loss in BTC?

If bitcoin fails to clear the resistance level of $ 39,500, there is a risk of a greater fall. On the downside, initial support is near the $ 37,000 level.

The first major endorsement is near the pivot level of $ 36,000. If the price breaks below the $ 36,000 support level, the price may fall towards the $ 34,000 support area in the short term.

Technical Indicators:

Hourly MACD – MACD is now gaining momentum in the region of recession.

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

Major support level – $ 37,500, followed by $ 36,000.

Major resistance levels – $ 38,500, $ 39,500 and $ 40,000.



Source link

findmostly
Avinash is a blogger, Enterprenuer, marketer and author. He is very good affiliate marketer and Product Reviewer.
https://findmostly.com