Bitcoin Continues To Fall, Here’s Why BTC Could Fall To A New Monthly Low
The price of Bitcoin is showing bearish signs and is trading well below $40,000 against the US dollar. BTC is likely to increase losses below $34,000 and $32,000 shortly.
- Bitcoin failed to resolve above $40,000 and started a further decline below $38,000.
- The price now trades well below $40,000 and 100 Simple Moving Averages (4 hours).
- The main downtrend line is the resistance near $37,500 on the BTC/USD four hour chart (Kraken power data).
- The pair is anticipated to continue lower as long as it trades below $ 38,000 and $40,000.
Bitcoin Price Turns Red.
Last week, the price of bitcoin began a decent rally above the $35,000 level against the US dollar. The BTC/USD pair even broke through the resistance level of $38,000.
However, the price did not break through the $40,000 level and remained well below 100 simple moving averages (4 hours). The high value formed near $40,971, and the price began to fall further. There was a break below the $38,000 support level.
Bitcoin is trading below the 50% Fib retracement level on the upside from a low of $31,296 to a high of $40,971. The main bearish line also forms with resistance near $37,500 on the four hour BTC/USD pair chart.
The pair now tests the 76.4% Fib pull level to drop from $31,296 to $40,971. If the low falls below the support levels of $34,000 and $33,500, the price will likely accelerate to the bottom.
The next significant support is near the $31,250 level, below which the price is likely to test the $30,000 support level in the short term.
Upsides Limited in BTC?
If bitcoin remains stable above the $33,500 level, a new wave could start. Initial resistance to the upside is near the $36,500 level.
The first significant resistance is near the trendline and is $38,000. The primary resistance is now near $40,000. Close to $40,000 is imperative to initiate stable short-term growth. The next key hurdle could be $45,000.
Technical indicators
4-hour MACD – MACD for BTC / USD is gaining momentum in the bearish zone.
4 hour RSI (Relative Power Index) – The RSI for BTC / USD is now well below the 50 levels.
Major Support Level – $33,500
The main resistance level – $38,000
