[Bitcoin price analysis] BTC sends out extended downward correction signal
Bitcoin price is struggling to clear the $37.800 and $38.000 resistance levels against the U.S. dollar.
The price is now well below $36.000 and 55 simple moving averages (4 hours).
There is a major contraction triangle on the 4-hour chart of the BTC/USD currency pair, and the support level is near $35.200 (data from Coinbase).
If the USD 35.200 and USD 35.000 support levels are cleared, the currency pair may fall sharply.
The price of Bitcoin is slowly falling to a level below $36.000. If BTC closes below US$35.000 and US$34.500 in the short term, it may fall sharply.
Bitcoin price analysis
In the past few days, there has been a bearish reaction when the Bitcoin price fell below $39.200. BTC started a new decline and fell below the USD 38.000 and USD 37.500 support levels.
The last swing high was around 37.900 USD and is currently trading below 38.000 USD. The support level of $36.500 and the 55 simple moving average (4 hours) were broken. It fell from a low of $33.911 to a high of $37.900 and broke below the 50% Fib retracement level of the upward breakthrough.
There seems to be a major contraction triangle formed on the 4-hour chart of the BTC/USD currency pair, with the support level near $35.200. The triangle support level is close to the 61.8% Fibonacci retracement level of the upward movement, rising from a low of $33.911 to a high of $37.900.
If there is a downside break below the triangle support and 35.000 USD, the price of Bitcoin may accelerate lower. Under the above circumstances, the shorts may test $34.000.
Any more losses could open the door for pushing the $32.000 support area. On the bright side, the key obstacles are formed near $36.000 and 55 simple moving averages (4 hours). The main resistance is formed near the 38.500 USD.
Breaking through the $38.000 and $38.500 resistance levels can open the door to the $40.000 level for the next trading day.
Bitcoin price
As can be seen from the chart, the price of Bitcoin is clearly well below $37.000 and 55 simple moving averages (4 hours). Overall, if the $35.200 and $35.000 support levels are cleared, the price may fall sharply.
Technical index
4 hours MACD – MACD gained momentum in the bearish zone.
4 hours RSI (Relative Strength Index)-RSI has now fallen below the 50 level.
Key support levels – 35.000 USD and 32.000 USD.
Key resistance levels – $36.500, $37.500 and $38.000.
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