June 22, 2021

Bitcoin Resumes Decline, Here’s Why BTC Could Dive To New Monthly Low

2 min read

Bitcoin rate is revealing bearish indications and trading well listed below $40,000 versus the US Dollar. BTC is most likely to extend losses listed below $34,000 and $32,000 in the near term.

  • Bitcoin stopped working to settle above $40,000 and it began a fresh decrease listed below $38,000.
  • The cost is now trading well below $40,000 and the 100 simple moving typical (4-hours).
  • There is a major bearish pattern line forming with resistance near $37,500 on the 4-hours chart of the BTC/USD set (information feed from Kraken).
  • The pair is most likely to continue lower as long as it is trading below $38,000 and $40,000.

Bitcoin Price Turns Red

This previous week, bitcoin rate began a good healing above the $35,000 level versus the United States Dollar. The BTC/USD set even broke the $38,000 resistance level.

However, the rate failed to settle above the $40,000 level and it stayed well below the 100 easy moving average (4-hours). A high was formed near $40,971 and the cost started a fresh decrease. There was a break below the $38,000 support level.

Bitcoin traded listed below the 50% Fib retracement level of the upward relocation from the $31,296 swing low to $40,971 high. There is likewise a major bearish trend line forming with resistance near $37,500 on the 4-hours chart of the BTC/USD pair.

Bitcoin Price

 Source: BTCUSD on TradingView.com

The set is now evaluating the 76.4% Fib retracement level of the upward relocation from the $31,296 swing low to $40,971 high. If there is a drawback break below the $34,000 and $33,500 assistance levels, the cost is most likely to speed up lower.

The next major assistance is near the $31,250 level, below which the price might possibly evaluate the $30,000 assistance level in the near term.

Upsides Limited in BTC?

If bitcoin stays stable above the $33,500 level, it might start a fresh boost. A preliminary resistance on the benefit is near the $36,500 level.

The first major resistance is near the trend line and $38,000. The main resistance is now near $40,000. A close above $40,000 is should to start a consistent increase in the near term. The next crucial barrier might be $45,000.

Technical indicators

4 hours MACD –– The MACD for BTC/USD is gaining momentum in the bearish zone.

4 hours RSI (Relative Strength Index) –– The RSI for BTC/USD is now well listed below the 50 level.

Significant Support Level –– $33,500

Major Resistance Level –– $38,000