Bitcoin (BTC) Shows Down Signals, May Make More Corrections.
Bitcoin price failed to clear the $ 37,500 and $ 37,800 resistance levels against the US Dollar. BTC is currently falling and could continue to drop to $ 34,000 or $ 33,000. According to the technical analysis of NewsBTC’s Aayush Jindal:
- Bitcoin is facing strong resistance near the $ 37,800 and $ 38,000 resistance levels.
- The price is currently trading below the $ 36,500 support and the 100 hourly simple moving average.
- There was a break under a major contracting triangle formation with support near $ 36,500 on the hourly chart of the BTC / USD pair ( according to Kraken data).
- The pair is showing bearish signals and could drop to $ 34,000 or $ 33,000.
Bitcoin (BTC) Price Falls
After another failed attempt above the $ 37,000 resistance, the bitcoin price started a new decline. It formed a high around $ 37,861 before the price dropped.
It broke the $ 37,000 and $ 36,800 support levels. More importantly, there was a break under a major contracting triangle formation with support around $ 36,500 on the hourly chart of the BTC / USD pair. The price is currently trading below the $ 36,500 support and the 100 hourly simple moving average.
The first downside support is near the $ 35,850 level. This is near the 50% Fib retracement level of the bullish move from $ 33,878 to $ 37,861.
If bitcoin price fails to stay above the $ 38,850 support, it may continue to drop towards $ 35,000. The next major support is near the $ 34,800 level, below which the price is likely to drop towards the $ 33,200 support zone in the coming sessions.
1 Will Bitcoin (BTC) Soar?
If Bitcoin starts a new upward move, the initial resistance is near the $ 36,350 level and the 100 hourly simple moving average. The first major resistance appears near the $ 36,800 level.
The main resistance on the upside is still above the $ 37,000 zone with $ 37,500 and $ 37,800. A successful close above the $ 37,000 resistance followed by a follow-up move above $ 37,500 could open the doors for a bigger increase in the near term.
2 Technical indicators
- Hourly MACD – The MACD is slowly gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently well below the 50 level.
- Major Support Levels – $ 35,800 followed by $ 34,800
- Major Resistance Levels – $ 36,800, $ 37,000 and $ 37,500