Bitcoin gained bearish momentum below $40,000 against the US Dollar. BTC is at risk of more downsides towards the $37,200 and $36,600 levels.
- Bitcoin started another decline below the $40,000 and $39,000 levels.
- The price is trading below $39,000 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $39,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might continue to move down unless the bulls able to push the price above $39,550.
Bitcoin Price Extends Decline
Bitcoin price struggled to stay above the $40,000 support zone. As a result, BTC extended decline below the $39,550 support zone and the 100 hourly simple moving average.
The price traded below the 61.8% Fib retracement level of the main increase from the $37,160 swing low to $42,550 swing high. It is now showing a few bearish signs below the $39,200 and $39,000 support levels. Bitcoin is also testing the 76.4% Fib retracement level of the main increase from the $37,160 swing low to $42,550 swing high at $38,430. If there is a minor recovery wave, the price might face resistance near the $38,850 level. The first major resistance on the upside is near the $39,000 zone. There is also a key bearish trend line forming with resistance near $39,000 on the hourly chart of the BTC/USD pair. If there is a clear move above the $39,000 resistance zone, the price might rise further.
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The next major resistance sits near the $39,550 level and the 100 hourly SMA, above which there are chances of a steady recovery wave above the $40,000 resistance zone.