From well above $42,000, the price of bitcoin began a new downward trend. BTC has moved into a bearish zone after falling below the $40,000 support level.
A closing below the $40,000 level and the 55 simple moving average was also seen (4-hours). The pair fell as low as $36,350, breaking through the $38,000 support barrier. It has since recovered its losses and is trading above $37,000.
Near the $38,380 mark, there is instant resistance. It’s around the 23.6 percent Fib retracement level of the latest drop from the swing high of $44,775 to the low of $36,350. On the upside, the next big resistance is near $38,500.
On the 4-hours chart of the BTC/USD pair, a strong negative trend line is forming with resistance near $38,350. In order to begin another increase, the price must rise above $39,000 in the near future. The 55 simple moving average and $40,600 could be the next key resistance levels (4-hours).
The 50% Fib retracement level of the latest slide from the $44,775 swing high to the $36,350 low is also near the $40,600 level. If no upside break occurs, BTC price may continue to fall below $37,500.
The next important level of assistance is around $37,000. If the price does not stay over $37,000, losses may be extended in the near future.
The key support is near $36,350, and a move below that level might lead to a decline towards $32,000. If there are any additional losses, the critical $30,000 support zone may be tested.
Source : TradingView
The price of bitcoin is obviously trading below $40,000 and the 55 simple moving average on the chart (4-hours). To begin a decent recovery wave, the price must first clear $38,350, then $39,000.
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