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BTC continues to drop and the price is showing bearish signs below the $40,000 level against the US dollar with the coin extending the losses even below that in the near-term as we can see more in our latest Bitcoin news today.
BTC failed to settle above the $40K level and started afresh drop below $38,000. The price is now trading well below the $40,000 and the 100 simple moving average with a major bearish trend line forming with the resistance near the $37,500 on the 4-hour charts of the pair. The pair could also continue lower as long as it is trading below $38,000. Over the past week, BTC’s price started a decent recovery above the $35,000 level against the US dollar with the pair breaking the $38,000 resistance.
However, the price failed to settle above $40,000 and remained below the 100 simple moving average and a new high was formed near the $40,971 and the price went on a fresh decline with a break below the $38,000 support. BTC traded below the 50% fib retracement level from the upwards movement of the $31,296 low to $40,971 high with a major bearish trend line forming with the resistance near $37,500 on the 4-hour charts of the pair. The pair is now testing the 76.4% fib retracement level from the upwards move of $31,296 low to $40,971 high.
If there’s another downside break below the $34,000 and $33,500 support levels with the price likely to drop lower. The next major support is close to the $31,250 level below which the price could possibly test the $30,000 support level in the near term. If BTC remains stable above the $33,500 level and could start a new increase with the initial resistance to the upside being near the $36,500 level. The first major resistance is close to the trend line and the $38,000 with the main resistance now nearing $40,000. the close above $40K is a must to start a steady increase in the near-term with the key barrier possibly settling at $45,000.
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The 4-hour MACD for the pair is gaining momentum in the bearish zone and the 4-hour RSI for the pair is now well below the 50 level with the first major support level set at $33,500 as BTC continues to drop.
