Why is there a danger of more losses for Bitcoin

Why Is There a Danger of More Losses for Bitcoin

Nevertheless, the bears were active around the $41,500 level. A high was created near $41,548, and the price started a fresh drop. There was a clear move under the $41,000 support zone. The price fell below the 50% Fib retracement level of the recent growth from the $39,269 swing low to the $41,548 high.

Besides, there was a break below a key bullish trend line with support around $40,400 on the hourly chart of the BTC/USD pair. The pair is now trading under $41,000 and the 100 hourly simple moving average.

It also spiked below the 76.4% Fib retracement level of the current increase from the $39,269 swing low to the $41,548 high. Immediate resistance on the upside is to close the $40,200 station. The following key resistance might be $40,400 and the 100 hourly SMA.

If the bulls can empty the $40,400 and $40,500 resistance levels, the price could begin a decent increase. The price may climb towards the $41,000 resistance zone in the stated case. Any more gains could set the pace for a move towards the critical $41,500 level in the near term.

More Losses in BTC?

If bitcoin fails to vacate the $40,400 resistance zone, it could start another slide. Immediate support on the downside is around the $39,650 level.

The next significant support is noticed near the $39,250 level. A downside break below the $39,250 support zone could accelerate losses. In the stated case, the price could drop towards the $38,500 level or even $37,750.

Technical indicators:

Hourly MACD – The MACD is now acquiring pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now under the 50 levels.

Major Support Levels – $39,650, followed by $39,250.

Major Resistance Levels – $40,400, $41,000 and $41,500.

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