The end of January was successful for the Bitcoin price. By the end of January, the price of Bitcoin was able to reach $39000, and most analysts predicted a return of the price above $40000. But with the beginning of February, the situation changed. Since the first days of February, the price of Bitcoin has resumed its bearish correction. And during these three days, the price of Bitcoin has already managed to drop below $37000. At the time of publication, the BTC/USD pair is trading around 36500.
The level of 40000 has become an important psychological level for Bitcoin. And until we see a daily close of Bitcoin price above 40000, the price will remain in a downtrend. And in the current situation, the price of Bitcoin, on the contrary, may see a new low. A decline in the price of Bitcoin below 35500 may provoke a movement towards 33000. Therefore, it is worth considering the recent strengthening of the price of Bitcoin as a temporary correction before a new decline.
On the daily chart, the BTC/USD pair continues to move in a downtrend. The downtrend line provides resistance around 38400.
On the hourly chart, the BTC/USD pair is trading below the 100 hourly moving average and below the support level of 36800. If the pair falls below the support level of 36650, it will continue to decline towards the support area of 36000. A move below this level will trigger a move towards the 35500 area. A break down of this level could trigger the movement of the BTC/USD pair to the 33000 area.
If the pair holds above the level of 36650, it will try to return above the resistance of 37000. However, an important resistance level lies in the area of 37500. Next, the pair will meet resistance in the form of a 100-hour moving average around 37800. A clear move above the resistance of 38000 could start a new growth. However, as we wrote above, until we see a daily close of the Bitcoin price above 40000, the price will remain in a downtrend.