Bitcoin failed to break through the $40,700 barrier and fell against the US dollar. BTC hit a new weekly low and may struggle to raise over $39,200. BITCOIN began a new drop after failing to break through the critical $40,700 resistance zone. The price has returned to below $39,000 and the 100 hourly simple moving average.

On the hourly chart of the BTC/USD pair, there was a breach below a connecting positive trend line with support near $39,500. The pair may correct higher, although gains may be limited between $38,800 or $39,200.

Bitcoin’s Value Plummeted Dramatically

Bitcoin’s price attempted to break beyond the $40,500 barrier. However, BTC could not break through the $40,700 and $40,750 resistance levels. A high was made near $40,776, and the price reacted negatively. The price fell sharply below $40,000 and the 100 hourly simple moving average. Furthermore, on the hourly chart of the BTC/USD pair, there was a breach below a connecting positive trend line with support near $39,500.

Bitcoin is presently trading below the $39,000 mark and the 100 hourly simple moving average. It has fallen as low as $37,672 and is now consolidating losses. It is approaching the latest slide’s 23.6 percent Fib retracement level from the swing high of $40,776 to the low of $37,672. On the upside, an immediate barrier is near the $38,800 mark. The next significant resistance level could be around $39,200.

The latest slide’s 50% Fib retracement level from the $40,776 swing high to the $37,672 low is also near the $39,250 level. The biggest barrier is currently building between $39,550 and the 100 hourly simple moving average. If there is a definite move above the $39,200 and $39,550 levels, the price may begin to rise. The price could break through the $40,000 barrier in the given instance. The next significant resistance level could be around $40,700.

More Bitcoin Losses?

If Bitcoin fails to break through the $39,200 barrier level, it may continue to fall. On the downside, there is immediate support near $37,650.

The next significant support is seen at about $37,500. A close below the $37,500 support level could signal the start of another slide. In the aforementioned scenario, the price may fall to $36,200. Good Luck!