Bitcoin extended decline below the $40,000 support against the US Dollar. BTC is correcting losses, but it might face resistance near the $39,500 zone.
- Bitcoin extended decline below the $40,000 and $39,500 support levels.
- The price is trading below $40,000 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $39,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct higher, but upsides might be limited above $40,000.
Bitcoin Price Remains In Downtrend
Bitcoin price failed to stay above the $42,000 support level and extended decline. BTC traded below the $41,200 support level to enter a bearish zone.
The decline gained pace below the $40,000 level and the 100 hourly simple moving average. The pair even broke the $39,500 support and traded as low as $38,000. It is now correcting losses and trading above the $38,800 level. Bitcoin is now testing the 50% Fib retracement level of the recent decline from the $40,450 swing high to $38,000 low. On the upside, an initial resistance is near the $29,300. The next key resistance is near the $39,500 level. There is also a key bearish trend line forming with resistance near $39,500 on the hourly chart of the BTC/USD pair. The trend line is close to the 61.8% Fib retracement level of the recent decline from the $40,450 swing high to $38,000 low. The main resistance is now forming near the $40,000 level.
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A clear move above the $40,000 resistance zone might start a decent increase. The next major resistance is near $40,450 and the 100 hourly simple moving average, above which the price might rise towards the $41,200 level.