Bitcoin continues to decline, here is the reason why BTC dropped to a new monthly low

Bitcoin's price is showing signs of bearishness and is trading well below $ 40,000 against the US Dollar. BTC is likely to increase its losses to below $ 34,000 and to $ 32,000 in the near term. Bitcoin failed to pay more than $ 40,000 and started a new decline below $ 38,000. The price is currently trading well below $ 40,000 and the simple 100 (4-hour) moving average. A major bearish trend line is forming on the 4-hour chart of the BTC / USD pair (Kraken data stream) with resistance around $ 37,500. The pair will likely remain low as long as it is trading below 38,000 USD and 40,000 USD. Bitcoin price turns red Last week, bitcoin price started a good recovery above the USD 35,000 level against the US dollar. The BTC / USD pair even broke the 38,000 USD resistance level. However, the price did not rise above the $ 40,000 level and was well below the simple 100 (4-hour) moving average. A value higher than $ 40,971 occurred and the price started to fall again. There was a break below the USD 38,000 support level. Bitcoin traded below the 50% Fib retracement level from the move from the $ 31,296 low to $ 40,971 high. A major bearish trend line is forming with resistance around $ 37,500 on the 4-hour chart of the BTC / USD pair. Source: On TradingView.com, the BTCUSD pair is currently testing the 76.4% Fib retracement level of the move from the $ 31,296 low to $ 40,971 high. If there is a downside break below the $ 34,000 and $ 33,500 support levels, the price is likely to fall further. The next major support is near the $ 31,250 level and the price below it could potentially test the $ 30,000 support level in the near term. Are the benefits limited in BTC? If Bitcoin remains stable above the $ 33,500 level, it could start a new uptrend. An initial resistance on the upside is near the USD 36,500 level. The first major resistance is near the trend line and at 38,000 USD. The main resistance is currently near $ 40,000. A close in excess of $ 40,000 is essential to start a steady uptrend in the near term.

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