The price of Bitcoin is still struggling to sell off $ 40,000 and $ 41,000 against the US dollar. BTC could decline considerably if there is a clear break below $ 37,000 and $ 36,500.
Bitcoin is still struggling to clear the $ 40,000 and $ 40,500 resistance levels. The price is currently trading near $ 38,000 and the 100 hourly simple moving average. A key trading triangle is forming with support near $ 37,500 on the hourly chart of the BTC / USD pair (data feed from Kraken). The pair could decline considerably if it settles below the $ 37,000 support and the 100 hourly SMA.
Bitcoin price faces key hurdles
Bitcoin made another attempt to gain bullish momentum above the $ 40,000 resistance. However, BTC was unable to continue higher and held in a key range below $ 40,500.
The last swing formed near $ 40,923 before the price started moving in a range. It corrected lower below the 23.6% Fib retracement level of the up move from the low of $ 31,088 to the high of $ 40,923. The price is now trading near $ 38,000 and the 100 hourly simple moving average.
A key trading triangle is also forming with support near $ 37,500 on the hourly chart of the BTC / USD pair. If bitcoin sustains above the triangle support trend line, it could start a new rally above $ 39,000.
Source: BTCUSD on TradingView.com
On the upside, an immediate resistance is near the $ 39,200 level. The first major resistance is near the $ 40,000 level and the upper trend line of the triangle. A close above the triangle resistance could open the doors for a sharp rise above the $ 40,500 and $ 40,600 resistance levels in the near term.
More losses in BTC?
If bitcoin fails to clear the $ 40,000 resistance, there is a risk of a downside breakout. An initial support to the downside is near the $ 37,500 level.
The first major support is near the $ 36,000 pivot level. It is close to the 50% Fib retracement level of the up move from the $ 31,088 low to $ 40,923 high. If there is a break to the downside below the $ 36,000 support, the price could decline towards the $ 34,000 support zone in the coming sessions.
Hourly MACD – The MACD is slowly picking up pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now below the 50 level.
Major Support Levels – $ 37,000, followed by $ 36,000.
Major Resistance Levels – $ 39,500, $ 40,000, and $ 40,500.