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Bitcoin Price Analysis: BTC Signaling Sharp Downside Correction

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  • Bitcoin price is struggling to clear the $37,800 and $38,000 resistance levels against the US Dollar.
  • The price is now trading well below $36,000 and the 55 simple moving average (4-hours).
  • There is a major contracting triangle forming with support near $35,200 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair could decline sharply if it clears the $35,200 and $35,000 support levels.

Bitcoin price is slowly moving lower below $36,000 against the US Dollar. BTC could decline heavily if it settles below $35,000 and $34,500 in the near term.

Bitcoin Price Analysis

In the past few days, there was a bearish reaction in bitcoin price below $39,200 against the US Dollar. BTC started a fresh decline and it traded below the $38,000 and $37,500 support levels.

The last swing high is near $37,900 and it is now trading below the $38,000 level. There was a break below the $36,500 support level and the 55 simple moving average (4-hours). There was a break below the 50% Fib retracement level of the upward move from the $33,911 swing low to $37,900 high.

It seems like there is a major contracting triangle forming with support near $35,200 on the 4-hours chart of the BTC/USD pair. The triangle support is close to the 61.8% Fib retracement level of the upward move from the $33,911 swing low to $37,900 high.

If there is a downside break below the triangle support and $35,000, bitcoin price might accelerate lower. In the stated case, the bears are likely to aim a test of $34,000.

Any more losses could open the doors for a push towards the $32,000 support zone. On the upside, there is a key hurdle forming near $36,000 and the 55 simple moving average (4-hours). The main resistance is forming near the $38,500 level.

A clear break above the $38,000 and $38,500 resistance levels could open the doors for a push towards the $40,000 level in the coming sessions.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is clearly trading well below $37,000 and the 55 simple moving average (4-hours). Overall, the price could decline sharply if it clears the $35,200 and $35,000 support levels.

Technical indicators

4 hours MACD – The MACD is now gaining momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI is now declining below the 50 level.

Key Support Levels – $35,000 and $32,000.

Key Resistance Levels – $36,500, $37,500 and $38,000.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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