Bitcoin (BTC) Price Analysis: Shows Bearish Signs, What are the Key Levels?

Bitcoin price is showing bearish signs and is trading well below $40,000 against the US Dollar. BTC is likely to take losses below $34,000 and $32,000 in the near term. According to technical analysis by NewsBTC’s Aayush Jindal:

• Bitcoin failed to rise above $40,000 and a fresh decline started below $38,000.
• The price is currently trading well below $40,000 and the 100 simple moving average (4-hours).
• There is a major bearish trend line forming with resistance near $37,500 on the 4-hours chart of the BTC/USD pair (data from Kraken).
• The pair could continue to decline as long as it trades below $38,000 and $40,000.

Bitcoin (BTC) Continues Its Fall

Last week, bitcoin price started a decent recovery above the $35,000 level against the US Dollar. The BTC / USD pair even broke the $ 38,000 resistance level.

However, the price failed to move above the $40,000 level and settled well below the 100 simple moving average (4-hours). The price climbed as high as $40,971 and then started a fresh decline. There was a break below the $38,000 support level.

Bitcoin traded below the 50% Fib retracement level of the upward move from the $31,296 high to $40,971 high. There is also a major bearish trend line forming with resistance near $37,500 on the 4-hours chart of the BTC/USD pair.

The pair is currently testing the 76.4% Fib retracement level of the upward move from the $31,296 high to $40.971 high. If there is a bearish break below the $ 34,000 and $ 33,500 support levels, the decline is likely to accelerate.

The next major support is near the $31,250 level, below which the price is likely to test the $30,000 support level in the near term.

Will Bitcoin (BTC) Rise?

If bitcoin holds steady above the $33,500 level, a fresh increase could begin. An initial resistance on the upside is near the $36,500 level.

The first major resistance is near the trendline at $38,000. The main resistance is currently near $40,000. A close above $40,000 is essential to start a steady rise in the near term. The next major hurdle could be $45,000.

Technical Indicators

• 4 hours MACD – The MACD for BTC / USD is gaining momentum in the bearish zone.
• 4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.
• Major Support Level – $33,500
• Main Resistance Level – $38,000