HomeBitcoin NewsBitcoin Price Analysis: BTC Turns Bearish Below $40K

Bitcoin Price Analysis: BTC Turns Bearish Below $40K

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  • Bitcoin price started a fresh decline below the $40,000 level against the US Dollar.
  • The price is now trading below $40,000 and the 55 simple moving average (4-hours).
  • There is a key bearish trend line forming with resistance near $38,350 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair must clear $38,350 and then $39,000 to start a decent recovery wave.

Bitcoin price declined heavily below $42,000 against the US Dollar. BTC even spiked below $37,000 and is currently correcting losses.

Bitcoin Price Analysis

Bitcoin price started a fresh decline from well above the $42,000 level. BTC declined below the $40,000 support zone to move into a bearish zone.

There was also a close below the $40,000 level and the 55 simple moving average (4-hours). The pair even declined below the $38,000 support level and traded as low as $36,350. It is now correcting losses and trading above the $37,000 level.

An immediate resistance is near the $38,380 level. It is near the 23.6% Fib retracement level of the recent decline from the $44,775 swing high to $36,350 low. The next major resistance on the upside is near the $38,500 level.

There is also a key bearish trend line forming with resistance near $38,350 on the 4-hours chart of the BTC/USD pair. To start another increase, the price must settle above the $39,000 level in the near term. The next major resistance could be $40,600 and the 55 simple moving average (4-hours).

The 50% Fib retracement level of the recent decline from the $44,775 swing high to $36,350 low is also near the $40,600 zone. If there is no upside break, the price might resume decline below $37,500.

The next key support is near the $37,000 level. If the price fails to stay above $37,000, it could extend losses in the near term. The main support sits near $36,350, below which there is a risk of a move towards the $32,000 level. Any more losses might call for a test of the key $30,000 support zone.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is clearly trading below $40,000 and the 55 simple moving average (4-hours). Overall, the price must clear $38,350 and then $39,000 to start a decent recovery wave.

Technical Indicators

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

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

Key Support Levels – $37,000 and $36,350.

Key Resistance Levels – $38,350, $39,000 and $40,600.

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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