Bitcoin price fell more than 4% and was trading below the $36,500 support level. BTC still holds the key $35,650 support area and a decline could attract buyers.
- Bitcoin began a new downward trend following the news of Binance’s agreement and CZ’s resignation.
- The price is trading below $37,000 and the 100-hour simple moving average.
- On the hourly chart of the BTC/USD pair (data feed from Kraken), a break occurred below a key bullish trendline with support around $36,980.
- Although it may be difficult in the short term, the downturn can be attractive to bulls.
Bitcoin price took a hit.
Bitcoin price failed to continue rising above the $37,800 resistance zone. BTC formed a short-term high and began a new downward trend after news of Binance’s settlement and CZ’s resignation were reported.
There was a sharp decline below the $37,000 level. On the hourly chart of the BTC/USD pair, a break occurred below the main bullish trendline with support around $36,980. The pair even broke the $36,500 support zone. It finally surged below the $36,000 level.
A low was formed near $35,645 and the price is currently consolidating losses. It recovered above the 23.6% Fib retracement level of the downward move from the $37,777 swing high to the $35,645 low.
Bitcoin is currently trading below $37,000 and the 100-hour simple moving average. On the other hand, immediate resistance is close to the $36,500 level. Major resistance is currently forming near the $36,700 level or the 50% Fib retracement level of the downside move from the $37,777 swing high to the $35,645 low.
Source: TradingView.com BTCUSD
A break above the $36,700 resistance could initiate a significant rally. The next major resistance could be near $37,000. A clear break above the $37,000 resistance could push the price further towards the $37,500 level. Resistance at $37,800 could also be tested if specified.
Will there be more losses in BTC?
If Bitcoin fails to rise above the $36,700 resistance zone, a new downtrend could begin. Immediate support for the downside is near the $36,000 level.
The next major support is at $35,650. There is further downside risk if the price falls below $35,650. If indicated, the price may fall towards the $34,700 support in the near term. The next major support or target could be at $34,200.
Technical indicators:
Hourly MACD – MACD is now losing speed in bearish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $36,000, then $35,650.
Key resistance levels – $36,500, $36,700 and $37,000.