Bitcoin price falls below the $37,000 level. BTC could continue to decline towards the $36,000 level or even the $35,000 zone in the coming sessions.
- Bitcoin is showing bearish signs and heading lower against the USD 37,750 resistance.
- The price is trading below $37,400 and the 100 hourly Simple Moving Average.
- A major bearish trendline is forming with resistance near $37,380 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to decline if it breaks the $36,750 support.
Bitcoin Price Extends Decline
Bitcoin price started a downward correction after peaking towards the $38,500 zone. BTC followed a bearish path and settled below the USD 37,200 level (as discussed in yesterday’s post).
There was a decline below the $37,000 level. A low was formed near USD 36,720 and the price is now consolidating losses. It climbed slightly above the 23.6% Fib retracement level of the recent decline from the $38,432 swing high to the $36,720 low.
Bitcoin is now trading below $37,400 and the 100 hourly Simple Moving Average. On the upside, immediate resistance is around the $37,400 level. There is also a major bearish trendline forming with resistance around $37,380 on the hourly chart of the BTC/USD pair.
The first major resistance forms around $37,570, or the 100 hourly Simple Moving Average. It is close to the 50% Fib retracement level of the recent decline from the $38,432 swing high to the $36,720 low. The main resistance is now near the USD 38,000 level. A close above the $38,000 resistance could trigger a strong upside.
Source: BTCUSD on TradingView.com
The next major resistance could be near USD 38,500, above which BTC could rise towards the USD 39,200 level. In the mentioned case, it could even head towards the USD 40,000 resistance.
Lose more in BTC?
If Bitcoin fails to rise above the USD 37,570 resistance zone, it could continue to decline. The immediate downside support is near the $36,720 level.
The next major support is $36,500. If there is a move below $36,500, there is a risk of more downside. In the mentioned case, the price could fall towards the support at USD 35,650 in the short term. The next major support or target could be $35,000.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 36,720, followed by USD 36,000.
Major resistance levels – $37,400, $37,570 and $38,000.
