TA: Bitcoin Consolidates Above $37.5K, Why BTC Could Nosedive

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Bitcoin is trading in a bearish zone below $39,000 against the US Dollar. BTC could accelerate lower if it continues to struggle below $39,500.

  • Bitcoin is showing bearish signs below the $40,000 and $39,000 levels.
  • The price is trading below $39,500 and the 100 hourly simple moving average.
  • There is a crucial bearish trend line forming with resistance near $38,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair might accelerate lower unless the bulls able to push the price above $39,550.

Bitcoin Price Keeps Struggling

Bitcoin price remained in a bearish zone below the $40,000 support zone. BTC attempted a recovery wave from the $38,500 zone, but the price stayed below the$39,550 resistance.

Recently, the price saw a fresh decline from the $39,550 resistance zone and the 100 hourly simple moving average. There was a clear move below the $38,800 and $38,500 support levels. The decline extended below the $38,000 support zone.

A low is formed near $37,625 and the price is now consolidating losses. Bitcoin is slowly moving higher and trading above the 23.6% Fib retracement level of the recent decline from the $39,499 swing high to $37,625 low.

The first major resistance on the upside is near the $38,550 zone. There is also a crucial bearish trend line forming with resistance near $38,550 on the hourly chart of the BTC/USD pair. The trend line coincides with the 50% Fib retracement level of the recent decline from the $39,499 swing high to $37,625 low.

Bitcoin Price

Source: BTCUSD on TradingView.com

If there is a clear move above the $38,550 resistance zone, the price might rise further. The next major resistance sits near the $39,550 level, above which there are chances of a steady increase. In the stated case, the price could even attempt a move above the $40,000 resistance zone.

More Losses in BTC?

If bitcoin fails to clear the $38,550 resistance zone, it could continue to move down. An immediate support on the downside is near the $37,800 zone.

The next major support is seen near the $37,650 level. The main support sits near the $37,150 level. If there is a downside break below the $37,150 support, the price might gain bearish momentum. In the stated case, it could nosedive towards the $36,500 level or even $36,000.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $37,650, followed by $37,150.

Major Resistance Levels – $38,550, $39,550 and $40,000.

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