Here’s Why The Price Of Bitcoin Could Slump Below $35K
The price of the flagship cryptocurrency appears to be bearish, with the BTC starting the day in the trading session at a massive decline from the $40,000 mark against the USD. As a result, Bitcoin records a breakout from the key support at $37,500 to dive into the bearish zone.
In what was a reflection of the general market trend, the price action of BTC has been anything but stable, which already has a spillover effect on the performance of other digital currencies and their price outlook.
Bitcoin Price Shed 8%
BTC failed to clear the $40,000 resistance support, culminating in more price swings as the price hovers between the red zone and slightly within the green area. Additionally, a high near $40,029 was formed, triggering another fresh decline. A major drop was also included below the previous price levels of $38,500 and $38,000.
Furthermore, a break was formed below a bullish trend line with significant support at the $39,250 mark displaying the price action of the BTC/USD pair on the daily price chart. Despite the brief upswing, the pair eventually declined the key support level at $37,500 before settling at the 100-hourly simple moving average (SMA).
However, the price of BTC was able to test the $35,500 price zone and trade for as low as $35,407, but it has consolidated the losses at the $36,200 price level.
The positive outlook for the price action shows that Bitcoin is currently experiencing some resistance at the $36,500 price mark.
Further insights provided by the Fibonacci model show a retracement occurs at 23.6% following a downward movement from the $40,029 to the low of $36,500. The next forecasted key resistance could be near the recent breakout point at $37,500, a zone where the bears seem to be waiting for a move.
Moreover, the 50% Fibonacci retracement of the downward trend from the $40,029 high swing to the $35,407 low swing is close to the $37,500 price zone. For any fresh uptrend to occur, the price must be well above the $37,500 level.
Is the BTC About to Experience More Losses?
Failure to clear the $36,500 resistance zone means that the price of BTC will be in a continuous decline in the coming days. The next immediate support would be found near the $36,600 price level.
Meanwhile, the next major support can be found close to the recent low, and in this case, a downward movement that is yet to meet the $35,500 support level could be the catalyst for another round of fresh price decline where the next support is set at $34,200.
Experts recommend waiting for further price action before making any decisions by investors and traders because the ups and downs of the market are subject to change once a variable becomes favorable to the market forces.
That said, there is reason to be worried about the future price prospects of BTC if the current situation in the market does not change in the coming days.
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