Bitcoin’s consolidation below $40k continues for the third consecutive day this week as the market cools off from last week’s rally
The cryptocurrency market has continued its consolidation phase after last week’s rally. Bitcoin failed to reach the $40,000 level again and even dropped below the $39,000 mark. Of the leading cryptocurrencies, Bitcoin and Dogecoin are the only ones trading in the red in the past 24 hours.
BTC’s price dropped below the $39,200 and $39,000 support levels yesterday. Bitcoin even broke the $38,500 level to dip further into a bearish zone. At the moment, BTC is settled well below the 4-hour 100 simple moving average.
BTC formed a low near $37,660, and the leading cryptocurrency is now attempting an upside correction. Analysts believe that a slow upward movement is in place for Bitcoin in the coming weeks.
BTC price outlook
The BTC/USD 4-hour chart is still looking bearish. BTC is trading below $38,000, and if it fails to surge past the $38,800 and $40,000 resistance levels, it could experience a further decline over the next few hours.
The initial support near the $38,000 level has already been breached, but the bulls are defending the first major support near the $37,800 zone. A downside break below this support level could lead to further losses, with the next major support close to the $37,000 region.
BTC/USD 4-hour chart. Source: Coinalyze
If Bitcoin overcomes the bearish trend line and reaches the $38,200 resistance level, it could face fresh resistance close to the $38,800 level. However, it would need a substantial rally to overcome the major resistance level near the $40,000 zone as the bearish sentiment in the market persists.
Bitcoin has struggled to maintain its price above $40,000 in the past couple of months. However, any move past the 50% Fib retracement level of $42,630 could set BTC up for further gains in the coming days and weeks.