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Technical Analysis: Bitcoin Resumes Decline, Why BTC Could Revisit $35K

Technical Analysis Bitcoin: Bitcoin initiated a fresh decline below $40,000 against the US Dollar. Further, BTC is gaining bearish momentum and could even drop to the $35,000 support. 

At the time of writing, Bitcoin started a fresh decline below the $40,000 and $39,000 levels. Further, the price is trading below $40,000 and the 100 hourly simple moving average.

There is a key bearish trend line forming with resistance near $38,500 on the hourly chart of the BTC/USD pair [Data from Kraken].

Also, this pair might continue to move down to $35,000 unless it recovers above $39,000.

Technical Analysis: Bitcoin Price Rises Decline

Bitcoin price has seen another major decline after it failed to stay above the $42,000 support. BTC broke many important supports near $40,000 to enter a bearish zone at the time of scripting. 

Furthermore, the price has accumulated bearish momentum below the $39,000 level and the 100 hourly simple moving average. Also, it even dropped below the $38,000 support level and traded as low as $37,801. The current price action suggests more downsides below $37,800.

In addition, if there is an upside correction, the bitcoin price might face resistance near the $38,500 level. It is close to the 23.6% Fib retracement level of the recent decline from the $41,920 swing high to $37,801 low at the time of scripting. 

Moreover, there is also a key bearish trend line forming with resistance near $38,500 on the hourly chart of the BTC/USD pair. The first key resistance is near the $39,800 level. It is close to the 50% Fib retracement level of the recent decline from the $41,920 swing high to $37,801 low.

Data from Kraken

A clear move above the trend line resistance and then a move above $39,800 might start a steady increase. The next major resistance for the bulls may possibly be near the $40,500 level and the 100 hourly simple moving average.

More Drubbings in BTC?

Technical Analysis Bitcoin: If bitcoin fails to clear the $38,500 resistance zone, it could continue to move down. Immediate support on the downside is near the $37,800 zone.

The next major support is seen near the $37,400 level. If there is a downside break below the $37,400 support, the price might start a major decline. Further, there is a risk of a move towards the $35,000 level in the stated case.



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