Briefly–
- BTC drops to $37K after the $41,300 June highs rejection
- The 100 SMA on a downtrend as bulls battle the $38K seller congestion area.
BTC bulls have experienced challenges over the past week as they attempt to sustain the coin’s price over $40,000.
Unfortunately, the surges from the $31,000 primary level met a massive barrier at around $41,300. That impaired the increasing trend.
BTC sellers managed to reverse gears due to the weekly bullish sentiment in the market. With that, BTC’s value dropped beneath $40K and has extended its bearish run to $37,000.
At the moment, the prominent digital coin is trading at $37,850 due to increased bearish momentum. Keep in mind that the 50 Simple Moving Average and the 200 SMA emphasize the $38,000 barrier. That hints at an undermined or delayed 40K recovery.
BTC-USD 4-Hour Chart
BTC Drops Might Gain Traction
Technical indicators show a bearish outlook in the near-term picture. According to the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) the BTC, market has witnessed increased bears. At the moment, MACD is inside the zero line indicating possibilities to cross to the negative zone. On the other hand, RSI shows an intense bearish stance. Moreover, the divergence increases as the MACD line crosses beneath the signal line, highlights the bearish sentiment.
Also, the RSI dropped from the overbought zone. At the moment, the indicator finds support at 40, showing a possible drop to $36K, as it points to the oversold region, which can translate to a drop to $34.4K.
Keep in mind that today’s (18 June) BTC move will rely on two regions – actions over $38K can confirm the increasing trend to $40K, while declines under the 100- SMA around $37K might trigger a drastic drop to $36K, with a possibility to stretch to $34K.
BTC Intraday Levels
- Spot rate – $37,850
- Trend – Bearish
- Volatility – Increasing
- Resistance zones – $38K and $40K
- Support – $36K and $34K
If you plan to invest in BTC in its current situation, you may need to be careful. A move in any direction is possible. The market is bearish for now. However, long-term investors predict an uptrend in the future, a usual thing in the Bitcoin market.
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