Bitcoin remains in danger, why BTC could dip below $ 38,000

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The price of Bitcoin has struggled to recover above $ 40,000 and has prolonged its decline against the US dollar. BTC could dip below $ 38,500 if it continues to stay below $ 40,000.

Bitcoin extended its decline below the support levels of $ 40,000 and $ 39,200. The price is now trading well below $ 40,000 and the 100 hour simple moving average. A major bearish trendline is forming with resistance near $ 39,250 on the hourly chart of the BTC / USD pair (Kraken data feed). The pair must break $ 39,250 and $ 40,000 to start a new near-term increase. Bitcoin price is in trouble

The price of Bitcoin has started to fall again well above the $ 42,000 level. BTC broke through the key support level of $ 40,500 to enter a near-term bearish zone.

The price even moved below the $ 40,000 level and the 100-hour simple moving average. It even broke through the $ 39,200 support zone and traded at $ 38,711. Price is now consolidating gains above the $ 38,700 level.

Initial resistance is near the $ 39,250 level. A major bearish trendline is also forming with resistance near $ 39,250 on the hourly chart of the BTC / USD pair. The first major resistance is near the $ 39,600 level. It is near the 23.6% Fib retracement level of the recent decline, from a high of $ 42,630 to a low of $ 38,711.

Source: BTCUSD on TradingView.com

Major resistance is now forming near the $ 40,500 level and the 100 hour simple moving average. It is near the 50% Fib retracement level of the recent decline, going from a high of $ 42,630 to a low of $ 38,711.

If there is an upside breakout above the trendline and then $ 40,000 bitcoin could rise to $ 40,500. The next major resistance on the upside is near the $ 41,200 area.

More losses in BTC?

If bitcoin fails to break above the resistance levels of $ 39,250 and $ 40,500, it could continue to fall. Initial bearish support is near the $ 38,700 level.

The first major support is now near the $ 38,500 area. A clear bearish break below the $ 38,500 support could encourage bears to take more losses. The next major support is near the $ 37,000 area.

Technical indicators:

Hourly MACD The MACD is now accelerating in a bearish zone.

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

Major support levels $ 38,500, followed by $ 37,000.

Major resistance levels $ 39,250, $ 40,000 and $ 40,500.

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