TA: Bitcoin Corrects Gains, Why BTC Must Could Extend Losses

[RSRS]

Bitcoin price started a downside correction from the $42,600 zone against the US Dollar. BTC is now trading below $40,000 and it might extend losses towards $38,500.

Bitcoin started a downside correction below the $41,200 and $40,000 support levels.
The price is now trading below $40,000 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $40,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to continue lower towards the $38,500 support zone in the near term.
Bitcoin Price Back Below $40K
Bitcoin price extended its increase above the $42,000 resistance level. BTC even climbed above the $42,500 resistance level and settled above the 100 hourly simple moving average.

However, the price struggled above the $42,600 level. A high was formed near $42,629 before the price started a downside correction. There was a break below the $41,200 and $40,500 support levels. It even broke the $40,000 support level and the 100 hourly simple moving average.

A low is formed near $39,281 and the price is now consolidating. An immediate resistance on the upside is near the $40,000 level. It is near the 23.6% Fib retracement level of the downward move from the $42,629 swing high to $39,281 low.

The first major resistance is near the $40,500 level and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $40,500 on the hourly chart of the BTC/USD pair.

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