Here’s Why BTC Remains At A Risk of Fresh Drop

Bitcoin price failed to clear the key $40,000 resistance zone against the US Dollar. BTC is correcting gains and it remains at a risk of more losses towards $36,000 or $34,000.

Bitcoin is struggling to clear the $40,000 and $40,500 resistance levels.
The price is currently holding the $37,000 support and the 100 hourly simple moving average.
There was a break below a short-term contracting triangle with support near $38,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to accelerate lower if it breaks the $37,000 support and the 100 hourly SMA.

Bitcoin Price Struggles Below $40K
Bitcoin broke the $40,000 resistance and extended its recovery wave. BTC even cleared the $40,500 level and settled well above the 100 hourly simple moving average.
However, the bulls failed to gain strength above $40,500. A high was formed near $40,923 and the price corrected lower. There was a break below the $40,000 support level. Moreover, there was a break below a short-term contracting triangle with support near $38,400 on the hourly chart of the BTC/USD pair.
The pair gained pace below the 50% Fib retracement level of the upward move from the $36,472 low to $40,923 high. Bitcoin is currently holding the $37,000 support and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com
The 76.4% Fib retracement level of the upward move from the $36,472 low to $40,923 high is also acting as a support zone. On the upside, an immediate resistance is near the broken triangle support at $38,500. The first major resistance is near the $39,500 level. The main resistance is still near the $40,000 zone. A proper close above the $40,000 resistance zone could start a strong increase.
More Losses in BTC?
If bitcoin fails to clear the $39,500 resistance, there is a risk of more downsides. An initial support on the downside is near the $37,000 level.
The first major support is near the $36,000 pivot level. If there is a downside break below the $36,000 support, the price could decline towards the $34,000 support zone in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $37,500, followed by $36,000.
Major Resistance Levels – $38,500, $39,500 and $40,000.

bitcoin
Bitcoin (BTC) $ 27,099.26
ethereum
Ethereum (ETH) $ 1,888.93
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 307.32
usd-coin
USD Coin (USDC) $ 0.999504
xrp
XRP (XRP) $ 0.516554
staked-ether
Lido Staked Ether (STETH) $ 1,886.40
cardano
Cardano (ADA) $ 0.371984
dogecoin
Dogecoin (DOGE) $ 0.072189
matic-network
Polygon (MATIC) $ 0.904372
solana
Solana (SOL) $ 21.02
litecoin
Litecoin (LTC) $ 94.81
tron
TRON (TRX) $ 0.076235
polkadot
Polkadot (DOT) $ 5.27
binance-usd
Binance USD (BUSD) $ 1.00
shiba-inu
Shiba Inu (SHIB) $ 0.000008
avalanche-2
Avalanche (AVAX) $ 14.36
dai
Dai (DAI) $ 0.999948
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 27,131.27
uniswap
Uniswap (UNI) $ 5.06
leo-token
LEO Token (LEO) $ 3.58
chainlink
Chainlink (LINK) $ 6.43
cosmos
Cosmos Hub (ATOM) $ 10.56
okb
OKB (OKB) $ 46.05
monero
Monero (XMR) $ 145.78
the-open-network
Toncoin (TON) $ 1.79
ethereum-classic
Ethereum Classic (ETC) $ 18.02
stellar
Stellar (XLM) $ 0.092166
bitcoin-cash
Bitcoin Cash (BCH) $ 114.54
filecoin
Filecoin (FIL) $ 4.98
internet-computer
Internet Computer (ICP) $ 4.82
true-usd
TrueUSD (TUSD) $ 0.999659
lido-dao
Lido DAO (LDO) $ 2.17
aptos
Aptos (APT) $ 9.03
quant-network
Quant (QNT) $ 118.16
hedera-hashgraph
Hedera (HBAR) $ 0.050880
arbitrum
Arbitrum (ARB) $ 1.20
crypto-com-chain
Cronos (CRO) $ 0.059430
vechain
VeChain (VET) $ 0.019952
near
NEAR Protocol (NEAR) $ 1.58
the-graph
The Graph (GRT) $ 0.130466
apecoin
ApeCoin (APE) $ 3.11
algorand
Algorand (ALGO) $ 0.151536
the-sandbox
The Sandbox (SAND) $ 0.564732
paxos-standard
Pax Dollar (USDP) $ 0.999701
frax
Frax (FRAX) $ 0.999502
edgecoin-2
Edgecoin (EDGT) $ 1.00
eos
EOS (EOS) $ 0.904313
rocket-pool
Rocket Pool (RPL) $ 49.24
elrond-erd-2
MultiversX (EGLD) $ 37.18