Bitcoin Price Breakdown Looks Real, Why BTC Could Dive Below $35K

 2022-05-06 10:11:44

Bitcoin started a strong decline from the $40,000 resistance.BTC broke the key $37,500 support to move into a bearish zone. Bitcoin price struggled to clear the $40,000 resistance zone. BTC formed a high near $40,029 and started a fresh decline. There was a major drop below the $38,500 and $38,000 levels.

 

There was a break below a key bullish trend line with support near $39,250 on the hourly chart of the BTC/USDT pair. The pair even declined below the key $37,500 support and settled below the 100 hourly simple moving average. Finally, it tested the $35,500 zone and traded as low as $35,407. It is now consolidating losses near the $36,200 level. On the upside, bitcoin price is now facing resistance near the $36,500 level.


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The next key resistance could be near the recent breakdown zone at $37,500, where the bears might take a stand. The 50% Fib retracement level of the downward move from the $40,029 swing high to $35,407 low is also near the $37,500 zone. To start a fresh increase, the price must settle above the $37,500 level.

 

If bitcoin fails to clear the $36,500 resistance zone, it could continue to move down. An immediate support on the downside is near the $36,000 level.

The next major support is seen near the $35,500 level or the recent low. A downside break below the $35,500 support might spark another sharp decline. The next major support could be $34,200.

 

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 in the oversold zone.

Major Support Levels – $36,000, followed by $35,500.

Major Resistance Levels – $36,500, $37,200 and $37,500.

 

DISCLAIMER: The analysis of cryptocurrencies in real-time should be taken for informational purposes only, and in no case should it be taken as an investment signal. Every investment and trading move involves risk. You should conduct your own research when making a decision.


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