TA: Bitcoin Corrects Gains, Why BTC Must Could Extend Losses

News BTC

Bitcoin price started a downside correction from the $42,600 zone against the US Dollar. BTC is now trading below $40,000 and it might extend losses towards $38,500.

  • Bitcoin started a downside correction below the $41,200 and $40,000 support levels.
  • The price is now trading below $40,000 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $40,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to continue lower towards the $38,500 support zone in the near term.

Bitcoin Price Back Below $40K

Bitcoin price extended its increase above the $42,000 resistance level. BTC even climbed above the $42,500 resistance level and settled above the 100 hourly simple moving average.

How To Get Free Crypto  

However, the price struggled above the $42,600 level. A high was formed near $42,629 before the price started a downside correction. There was a break below the $41,200 and $40,500 support levels. It even broke the $40,000 support level and the 100 hourly simple moving average.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

A low is formed near $39,281 and the price is now consolidating. An immediate resistance on the upside is near the $40,000 level. It is near the 23.6% Fib retracement level of the downward move from the $42,629 swing high to $39,281 low.

The first major resistance is near the $40,500 level and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $40,500 on the hourly chart of the BTC/USD pair.

Get 110 USDT Futures Bonus for FREE!
Source: BTCUSD on TradingView.com

The trend line is close to the 50% Fib retracement level of the downward move from the $42,629 swing high to $39,281 low. If there is an upside break above the trend line, bitcoin could rise towards $41,200. The next major resistance on the upside is near the $42,000 zone.

Coinbase Banner  

More Losses in BTC?

If bitcoin fails to climb above the $40,000 and $40,500 resistance levels, it could continue to move down. An initial support on the downside is near the $39,200 level.

The first major support is now near the $38,500 zone. A clear downside break below the $38,500 support might call for more losses. The next major support is near the $37,000 zone.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 30 level.

Major Support Levels – $38,500, followed by $37,000.

Major Resistance Levels – $40,000, $40,500 and $42,000.

Go to Source
Author: Aayush Jindal


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.