Bitcoin (BTC) Goes Red; Why It May Plunge beneath $39K

  • BTC kick-started another plunge after failing to overpower the resistance level at $40K.
  • The crypto hovers under $39.5K and 100hourly SMA.
  • BTC/USD 1hr chart shows a bearish trend-line developing with resistance at $39.5K.
  • Bitcoin may witness a massive fall if it closes under $38.8K.

Bitcoin launched new downward actions beneath the $40K mark. The crypto may witness more losses if it steadies beneath the resistance of $40K.

BTC Price Sees Bearish Pressure

Bitcoin saw its price dipping into a bearish territory after the crypto settled under the $40.5K mark. The leading crypto traded under the support of $40,000 and steadied below the 100hourly Simple Moving Average. Such developments had BTC exploring the bearish region.

BTC even lost the foothold at $39.2K, forming a low around $38.7K. For now, the price consolidates incurred losses. The nearest resistance to the upside sits at $39.5K. Furthermore, Bitcoin’s hourly chart shows a vital bearish trend-line emerging with $39.5K resistance.

Another resistance might emerge at $39.7K or the 23.6% Fibonacci retracement zone of the latest drop from $42,950 to $38.7K. BTC’s first resistance now forms near $40K. However, the primary resistance sat at $40.5K and the 100hourly SMA. BTC price should settle beyond $40.5K and 100hourly SMA for upside actions.

In such a scenario, the leading crypto may even overcome the 50% Fibonacci retracement area of the latest $42,950 – $38,700 move.

More Declines in Bitcoin?

Bitcoin could extend its downward movement if it fails to conquer the resistance at $40K. The barrier at $39K presents the closest support to the downside. More drops would see BTC exploring the following massive support level at $38,800. Invalidating this barrier can mean a downward move to the $37,500 value area.

For now, BTC appears weak, and analysts believe the bellwether’s downward path has fewer hurdles. The crypto witnesses bearish reactions beyond $39K and may lose this level in the coming sessions. The overall crypto market space reflects the downbeat mood. While publishing this content, the global cryptocurrency market capitalization dropped 1.99% over the past day to $1.81 trillion.

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