Bitcoin price is falling below the $37,000 level. BTC may continue to decline towards the $36,000 level or even the $35,000 area in the next session.
- Bitcoin is in a downward trend and is moving down from the $37,750 resistance.
- The price is trading below $37,400 and the 100-hour simple moving average.
- The hourly chart of the BTC/USD pair (data feed from Kraken) shows a major bearish trendline forming with resistance near $37,380.
- A break above the support level of $36,750 could continue the decline for the currency pair.
Bitcoin price decline continues
Bitcoin price surged into the $38,500 area and then began a downward correction. BTC followed a bearish path and settled below the $37,200 level (as discussed in yesterday’s post).
It fell below the $37,000 level. A low was formed near $36,720 and the price is currently consolidating losses. It is slightly above the 23.6% Fib retracement level of the recent decline from the $38,432 swing high to the $36,720 low.
Bitcoin is currently trading below $37,400 and the 100-hour simple moving average. On the other hand, immediate resistance is close to the $37,400 level. The hourly chart of the BTC/USD pair also has a major bearish trendline forming with resistance near $37,380.
The first major resistance is forming near $37,570 or the 100-hourly simple moving average. It is close to 50% of the Fib retracement level of the recent decline from the $38,432 swing high to the $36,720 low. Key resistance is currently near the $38,000 level. A break above the $38,000 resistance could initiate a strong rally.
Source: TradingView.com BTCUSD
The next major resistance could be near $38,500, above which BTC could rise towards the $39,200 level. If indicated, there may be a move towards the $40,000 resistance level.
Will there be more losses in BTC?
If Bitcoin fails to break above the $37,570 resistance zone, it may continue to fall. Immediate support for the downside is near the $36,720 level.
The next major support is at $36,500. There is further downside risk if it falls below $36,500. If indicated, the price may decline towards the $35,650 support level in the near term. The next major support or target could be $35,000.
Technical indicators:
Hourly MACD – MACD is now picking up speed in bearish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $36,720, then $36,000.
Key resistance levels – $37,400, $37,570 and $38,000.