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

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Saturday, 29 May 2021

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

Bitcoin price is showing bearish signs and trading well below $40,000 against the US Dollar. BTC is likely to extend losses below $34,000 and $32,000 in the near term.

  • Bitcoin failed to settle above $40,000 and it started a fresh decline below $38,000.
  • The price is now trading well below $40,000 and the 100 simple moving average (4-hours).
  • There is a major bearish trend line forming with resistance near $37,500 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to continue lower as long as it is trading below $38,000 and $40,000.

Bitcoin Price Turns Red

This past week, bitcoin price started a decent recovery above the $35,000 level against the US Dollar. The BTC/USD pair even broke the $38,000 resistance level.

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

Bitcoin traded below the 50% Fib retracement level of the upward move from the $31,296 swing low to $40,971 high. There is also 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 pair is now testing the 76.4% Fib retracement level of the upward move from the $31,296 swing low to $40,971 high. If there is a downside break below the $34,000 and $33,500 support levels, the price is likely to accelerate lower.

The next major support is near the $31,250 level, below which the price may possibly test the $30,000 support level in the near term.

Upsides Limited in BTC?

If bitcoin remains stable above the $33,500 level, it could start a fresh increase. An initial resistance on the upside 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 must to start a steady increase in the near term. The next key barrier could 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 below the 50 level.

Major Support Level – $33,500

Major Resistance Level – $38,000



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