TA: Bitcoin Remains at Risk, Why 100 SMA Is The Key

Aayush Jindal

1 year ago

2 mins read

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Bitcoin is still struggling below $41,500 against the US Dollar. BTC remains at a risk of more downsides below the $39,000 support zone.

Bitcoin is showing bearish signs below the $40,500 and $41,500.
The price is now trading below $40,500 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $40,180 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could extend decline if there is a clear move below the $39,000 support zone.

Bitcoin Price Resumes Decline

Bitcoin price remained below the key $41,500 resistance zone. BTC seems to be trading in a range above the $39,000 level and below the $41,500 resistance zone.

The last swing low was formed near $39,600 before the price started an upside correction. There was a move above the $40,000 resistance zone. The price climbed above the 23.6% Fib retracement level of the downward move from the $41,548 swing high to $39,600 low.

However, the price faced a strong resistance near the $40,500 level and the 100 hourly simple moving average. Bitcoin also struggled near the 50% Fib retracement level of the downward move from the $41,548 swing high to $39,600 low.

There is also a key bearish trend line forming with resistance near $40,180 on the hourly chart of the BTC/USD pair. An immediate resistance on the upside is near the $40,200 level.

Source: BTCUSD on TradingView.com

The next key resistance could be $40,380 and the 100 hourly SMA. To start a recovery wave, the price must clear the $40,380 zone and the 100 hourly SMA. In the stated case, the price may perhaps rise towards the $40,850 resistance zone. Any more gains could set the pace for a move towards the main $41,500 hurdle in the near term.

More Losses in BTC?

If bitcoin fails to clear the $40,180 resistance zone, it could start another decline. An immediate support on the downside is near the $39,600 level.

The next major support is seen near the $39,180 level. A downside break below the $39,180 support zone could accelerate losses. In the stated case, the price could decline towards the $38,800 level or even $38,500.

Technical indicators:

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

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

Major Support Levels – $39,600, followed by $39,180.

Major Resistance Levels – $40,180, $40,400 and $41,500.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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