Bitcoin Turns Red, Here’s Why BTC Could Resume Its Decline
Bitcoin price started a fresh decline after it failed to clear $38,000 against the US Dollar. BTC is now struggling below $36,500 and it remains at a risk of more losses.
Bitcoin started a fresh decline from well above the $38,000 support level.
The price is now trading well below $37,000 and the 100 hourly simple moving average.
There is a crucial bearish trend line forming with resistance near $36,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to continue lower if it fails to clear the $36,200 and $36,500 resistance levels.
Bitcoin Price Faces Resistance
Bitcoin failed to continue higher above the $38,000 resistance and started a fresh decline. BTC broke the $36,500 and $35,500 support levels to move into a bearish zone.
The price even broke the $34,000 support level and settled well below the 100 hourly simple moving average. It traded as low as $33,373 and it recently started an upside correction. Bitcoin was able to recover above the $34,000 and $35,000 resistance levels.
There was also a break above the 50% Fib retracement level of the recent decline from the $36,463 swing high to $33,373 low. However, the price is facing a major resistance near the $36,000 zone.
Source: BTCUSD on TradingView.com
It is still trading well below $37,000 and the 100 hourly simple moving average. The 76.4% Fib retracement level of the recent decline from the $36,463 swing high to $33,373 low is currently acting as a resistance. Besides, there is a crucial bearish trend line forming with resistance near $36,400 on the hourly chart of the BTC/USD pair.
To move into a positive zone, the price must clear the trend line resistance, $36,500 and the 100 hourly SMA. The next major resistance on the upside sits at $38,000.
More Losses in BTC?
If bitcoin fails to clear the trend line resistance and $36,500, it could continue to move down. An immediate support on the downside is near the $35,000 level.
The next major support is near the $34,000 level. A downside break below $34,000 could push the price to $33,000. Any more losses could open the doors for a move towards the $32,000 support zone in the near term.
Hourly MACD – The MACD is slowly moving into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is struggling to stay above the 50 level.
Major Support Levels – $35,000, followed by $34,000.
Major Resistance Levels – $36,200, $36,500 and $38,000.