• Bitcoin price extended decline below the $38,000 zone against the US Dollar.
  • The price is now trading below $39,000 and the 55 simple moving average (4-hours).
  • There is a major bearish trend line forming with resistance near $39,250 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair could start a steady increase if there is a move above the $39,400 level.

Bitcoin price is struggling below $40,000 against the US Dollar. BTC might extend losses if it stays below the $39,400 and $40,000 resistance levels.

Bitcoin Price Analysis

Bitcoin price failed to clear the $40,800 resistance zone. As a result, BTC started a fresh decline and traded below the key $39,900 support zone.

There was a clear move below the $39,250 level and the 55 simple moving average (4-hours). The price even spiked below the $38,000 level. A low is formed near $37,700 and the price is now correcting losses. There was a move above the $38,000 resistance zone.

The price is now testing the 23.6% Fib retracement level of the downward move from the $40,817 swing high to $37,700 low. An immediate resistance on the upside is near the $39,000 level.

The next major resistance on the upside is near the $39,250 level. There is also a major bearish trend line forming with resistance near $39,250 on the 4-hours chart of the BTC/USD pair. It is near the 50% Fib retracement level of the downward move from the $40,817 swing high to $37,700 low.

To start another increase, the price must settle above the $39,250 level in the near term. If there is no upside break, the price might start a fresh decline below $38,000. The next key support is near the $37,200 level. Any more losses might call for a test of the key $36,500 support zone, where the bulls might take a stand in the near term.

Bitcoin Price

Bitcoin Price

Looking at the chart, bitcoin price is clearly trading below $39,000 and the 55 simple moving average (4-hours). Overall, the price could start a steady increase if there is a move above the $39,400 level.

Technical Indicators

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

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

Key Support Levels – $38,000 and $37,200.

Key Resistance Levels – $39,000, $39,250 and $40,000.

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