Wednesday, August 4

Bitcoin Price Analysis: Erases Gains, What Are The Key Levels?

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Bitcoin price started a fresh decline after it failed to stay above $40,000 against the US Dollar. BTC is falling and it could even test $35,000 in the near term. According to technical analysis by NewsBTC’s Aayush Jindal:

  • Bitcoin started a fresh decline well above the $40,000 pivot level.
  • The price is currently trading well below $39,000 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $38,500 on the hourly chart of the BTC/USD pair (data from Kraken).
  • If the pair fails to stay above the $37,200 support area, it could continue to decline.

Bitcoin (BTC) Price Continues Its Fall

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Bitcoin failed to stay above the key $40,000 support zone and started a fresh decline. BTC broke the $39,500 and $38,500 support levels to move into a short-term bearish zone.

The price traded below the 50% Fib retracement level of the upward move from the $34,822 low to $41,380 high. It is currently trading well below $39,000 and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $38,500 on the hourly chart of the BTC/USD pair.

An immediate support on the downside is near the $37,200 level. It is close to the 61.8% Fib retracement level of the upward move from the $34,822 low to $41,380 high.

bitcoin btc analysis deletes its gains what are the important levels 1

If there is a downside break below the $37,200 support, the price might even struggle to stay above the $36,500 support. Any more losses could open the doors for a move towards the $35,000 support zone in the near term.

Will Bitcoin (BTC) Rise?

If bitcoin stays above the $37,200 support, a fresh increase could begin. An initial resistance on the upside is near the $38,200 level.

The first major resistance is near the $38,500 level and the downtrend line. A successful break above the trend line could lead the price towards the $39,500 resistance zone and the 100 hourly SMA. A close above the 100 hourly SMA is essential for a fresh increase above the $40,000 resistance zone in the coming sessions.

Technical Indicators

  • Hourly MACD – The MACD is slowly moving into the bearish zone.
  • Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.
  • Major Support Levels – 37,200 then $36,500
  • Major Resistance Levels – $38,200, $38,500 and $40,000

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