Bitcoin TA: Here’s Why BTC Remains At A Risk of Fresh Drop

Aayush Jindal

Last Updated: June 11, 2024 1:56 pm

2 mins read

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Bitcoin price failed to clear the key $40,000 resistance zone against the US Dollar. BTC is correcting gains and it remains at a risk of more losses towards $36,000 or $34,000.

Bitcoin is struggling to clear the $40,000 and $40,500 resistance levels.
The price is currently holding the $37,000 support and the 100 hourly simple moving average.
There was a break below a short-term contracting triangle with support near $38,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to accelerate lower if it breaks the $37,000 support and the 100 hourly SMA.

Bitcoin Price Struggles Below $40K

Bitcoin broke the $40,000 resistance and extended its recovery wave. BTC even cleared the $40,500 level and settled well above the 100 hourly simple moving average.

However, the bulls failed to gain strength above $40,500. A high was formed near $40,923 and the price corrected lower. There was a break below the $40,000 support level. Moreover, there was a break below a short-term contracting triangle with support near $38,400 on the hourly chart of the BTC/USD pair.

The pair gained pace below the 50% Fib retracement level of the upward move from the $36,472 low to $40,923 high. Bitcoin is currently holding the $37,000 support and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

The 76.4% Fib retracement level of the upward move from the $36,472 low to $40,923 high is also acting as a support zone. On the upside, an immediate resistance is near the broken triangle support at $38,500. The first major resistance is near the $39,500 level. The main resistance is still near the $40,000 zone. A proper close above the $40,000 resistance zone could start a strong increase.

More Losses in BTC?

If bitcoin fails to clear the $39,500 resistance, there is a risk of more downsides. An initial support on the downside is near the $37,000 level.

The first major support is near the $36,000 pivot level. If there is a downside break below the $36,000 support, the price could decline towards the $34,000 support zone in the near term.

Technical indicators:

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

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

Major Support Levels – $37,500, followed by $36,000.

Major Resistance Levels – $38,500, $39,500 and $40,000.

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.

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