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

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 $40,5...