TA: Bitcoin Drops From $ 40K, Here's Why The Uptrend Is Still Not Broken In BTC

Bitcoin price started a downside correction well above $40,000 against the US Dollar. BTC is currently trading near a major support at $38,000 where the bulls are active. Bitcoin started a downside correction after failing to stay above $40,000. The price is currently just below $39,000 and the 100 hourly simple moving average. There was a break below a key contracting triangle with support near $39,900 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start a fresh increase unless it closes below the $38,000 support. Bitcoin Price Revises Key Support Bitcoin hit $41,350 before starting a downside correction. BTC consolidated above $40,000 some time before the bulls were able to protect the said support zone. The price settled below the $40,000 and $39,500 support levels. There was a break below a key contracting triangle with support near $39,900 on the hourly chart of the BTC/USD pair. The pair even broke the $38,500 support level and the 100 hourly simple moving average. However, the bulls are protecting the $38,000 support zone (the latest breakout zone). The price is currently consolidating above the $38,000 level. It is also just under $39,000 and the 100 hourly simple moving average. The 23.6% Fib retracement level of the recent decline from the $41,350 low to $38,154 low is also close to the 100 hourly SMA. Source: BTCUSD on TradingView.com First major resistance is near the $39,750 level. It is close to the 50% Fib retracement level of the recent decline from the $41,350 high to $38,154 low. The main resistance is currently forming near the $40,000 zone. A clear break above the $40,000 zone is likely to set the pace for another near-term rally. Losing more in BTC? If bitcoin fails to break the $39,750 and $40,000 resistance, it could extend its decline. An initial support on the downside is near the USD 38,150 level. First major support near USD

Join the Discussion

  • BrokerEUR/USD
    LCG 0.3pips (variable) margin: 3.33%
    FX Pro 0.91pips. (variable) margin: 3.33%
  • Back to top