Bitcoin (BTC) Resumes Downswing; Why $35K Revisit is Possible
- Bitcoin recorded new downswings beneath $40K and $39K.
- The price hovers beneath $40K and the 100-Hr Simple Moving Average.
- BTC/USD’s one-hour chart shows a bearish trend-line developing with resistance at $38.5K.
- Bitcoin should recover past $39K to avoid extended downswings towards the $35K support.
BTC kick-started new declines beneath the $40K level. The leading crypto sees increased bearish strength and might even plunge towards the support floor of $35K.
BTC Extends Decline
The bellwether cryptocurrency started another massive downward move after failure to stabilize beyond the $42K foothold. Bitcoin violated multiple crucial supports around $40K before entering a bearish territory.
BTC’s price gained bearish pressure beneath $39K and 100-hr Dimple Moving Average. Moreover, the crypto plummeted beneath the support floor at $38K, exploring lows of $37,801. Bitcoin’s current price trends suggest further downsides beneath $37.8K.
However, upside corrections will see Bitcoin on the initial hurdle around $38.5K. The resistance sits near the 23.6% Fibonacci retracement area of the latest fall to $37,801 from $41,920.
Moreover, the pair’s one-hour chart shows a bearish trend-line emerging with resistance at $38.5K. Meanwhile, BTC’s first critical resistance stands at $39.8K. The area is near the 50% Fibonacci retracement of the downside move from $41,920 to $37,801 swing low.
An action past the trend-line resistance and beyond $39.8K may kick-start steady uptrends. Bulls would meet another challenging resistance at $40.5K and 100-Hr Simple Moving Average.
More Declines in Bitcoin?
Bitcoin’s failure to overcome the resistance zone at $38.5K would translate to continued downswings. The closest support would emerge around the $37.8K mark.
Further downward actions will hit the support floor near $37.4K. Violating this footing will translate to massive downside retracements. Such developments will see the world’s leading crypto exploring the $35K mark.
The global market cap reflects a downbeat mood in the financial space. While publishing this article, overall cryptocurrency market capitalization stood at $1.70 trillion, following a 4% decrease over the past day.
BTC Technical Indicators
- 1-hour MACD gains pace within bearish region.
- One-hour RSI stands around the 30-mark.
- Critical support zones: $37.8K, $37.4K
- Crucial resistance zones – $38.5K, $39.8K and $40K.