TA: Bitcoin Shrinks Profits, Could Cause Another Drop to $35,000

Bitcoin price started another decline after it failed to stay above $40,000 against the US Dollar. BTC is falling and it could even drop to $35,000 in the near term. Bitcoin started another 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 feed from Kraken). The pair is likely to stay lower if it fails to stay above the $37,200 support zone. Bitcoin price extends bearish Bitcoin failed to stay above the key $40,000 support zone and started another 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. On the downside, immediate support is near the USD 37,200 level. It is close to the 61.8% Fib retracement level of the upward move from the $34,822 high to $41,380 high. Source: TradingView.com If BTCUSD breaks below the $37,200 support, the price may even struggle to stay above the $36,500 support. Even more losses could open the door for a move towards the $35,000 support zone in the near term. New rise in BTC? If bitcoin stays above the $37,200 support, it could start another uptrend. Initial resistance on the upside is near the USD 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 a must for a fresh rise above the $40,000 resistance zone on com.

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