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.

By Samuel Hegi Last updated Jan 20, 2021

lobal markets closed positively in the past week. In the new week, the decision of the Federal Reserve ( FED ) is followed..

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

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