Bitcoin started a strong decline below the $37,500 and $36,500 levels.
The price is now trading below $37,500 and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $39,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might accelerate further lower below the $35,000 support zone in the near term.
Bitcoin Price Dives 8%
Bitcoin price struggled to clear the $40,000 resistance zone. BTC formed a high near $40,029 and started a fresh decline. There was a major drop below the $38,500 and $38,000 levels.
There was a break below a key bullish trend line with support near $39,250 on the hourly chart of the BTC/USD pair. The pair even declined below the key $37,500 support and settled below the 100 hourly simple moving average.
Finally, it tested the $35,500 zone and traded as low as $35,407. It is now consolidating losses near the $36,200 level. On the upside, bitcoin price is now facing resistance near the $36,500 level.
The 23.6% Fib retracement level of the downward move from the $40,029 swing high to $35,407 low is also near the $36,500 zone. The next key resistance could be near the recent breakdown zone at $37,500, where the bears might take a stand.
Source: BTCUSD on TradingView.com
The 50% Fib retracement level of the downward move from the $40,029 swing high to $35,407 low is also near the $37,500 zone. To start a fresh increase, the price must settle above the $37,500 level.
More Losses in BTC?
If bitcoin fails to clear the $36,500 resistance zone, it could continue to move down. An immediate support on the downside is near the $36,000 level.
The next major support is seen near the $35,500 level or the recent low. A downside break below the $35,500 support might spark another sharp decline. The next major support could be $34,200.
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now in the oversold zone.
Major Support Levels – $36,000, followed by $35,500.
Major Resistance Levels – $36,500, $37,200 and $37,500.