This week, Bitcoin price staged another recovery mission, extending the gains from support at $33,000 to highs around $39,000. Investors anticipated a break above $40,000, but the rejection has led to an ongoing retreat.
The pioneer cryptocurrency trades at $37,800 while holding dearly to the 100 Simple Moving Average (SMA). It is almost certain that the bearish leg will stretch further; therefore, the 50 SMA on the four-hour chart is in line to offer support.
It is essential to keep in mind that for a few days this week, BTC was pivotal at $37,000. Support at $36,000 played a key role in ensuring that declines were mitigated. On the upside, bulls found it challenging to break through $38,000 except for Thursday’s price action that extended to $39,000.
Bitcoin’s bearish outlook intensifies
The relative Strength Index (RSI) on the four-hour chart has a vivid bearish signal. This follows a gradual rise from May’s oversold conditions to levels close to 70. A correction toward the midline insinuates that bears are getting aggressive, and more gravitational pull on the price should be expected.
A comprehensive look at the Moving Average Convergence Divergence (MACD) shows that bulls still have the upper hand, but we cannot ignore the speed at which sellers are advancing. Therefore, a sell signal will occur if the MACD line (blue) crosses under the signal line. Subsequently, defending support at the 50 SMA and $36,000 is crucial to averting potential losses to $33,000.
BTC/USD four-hour chart
On the upside, regaining ground above $38,000 would call more buyers into the market and perhaps resume the uptrend above $39,000. Trading past $40,000 is critical because investors would most likely increase their stakes while speculating upswing to $40,000.
Bitcoin intraday levels
Spot rate: $37,800
Support: 50 SMA, $36,000 and $33,000
Resistance: $39,000 and $40,000