BTC Price Forecast: Time To Sell Bitcoin As It Slumps Below $39,000?

• BTC price fell below the $39,000 level while battling immediate resistance near the $40,000 psychological level.
• Bitcoin price forecast is bearish as confirmed by the MACD and RSI Indicators.

Bitcoin price prediction appears bearish after dropping below the $39,000 following a drop below the $40,000 psychological level on Wednesday. The BTC price, and its likely to drop below to $38,000 and $37,500 in the near term. This follows the bellwether cryptocurrency flashing several bearish signals on the four-hour chart.

BTC Price Falls Below $39,000

Bitcoin maintained the bullish leg between July 21 and July 28, during which the BTC price rose approximately 36% from $29,780 to $40,700. During this week, BTC/USD had a fresh upsurge rising from the $36,500 support area. Bitcoin remained buoyant above the $39,000 level at the beginning of the week which saw the bullish leg stretch beyond the $40,000 psychological level. However, BTC price has failed to violate the $40K resistance level despite several attempts.

At the time of writing, Bitcoin teeters around $38,600 and appears to be battling immediate resistance at $39,700. The appearance of three bearish candlesticks show that the chances of a bearish reversal will be high.

Note that if the BTC price closes the session below the $39,700 level, it will trigger sell orders that might push the price towards the $38,200 support zone.

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BTC Price Four-Hour Chart

Note that technical analysis using the Relative Strength Index and the Moving Average Convergence Divergence (MACD) adds credence to this bearish thesis. For example, the MACD sent a sell signal yesterday when the 12-day Exponential Moving Average (EMA) shown by the blue line crossed below the 26-day EMA (orange) accentuating the bearish narrative. Moreover the position of the MACD below the signal line and its movement towards the neutral line confirms this bearish outlook.

Moreover, the RSI dive towards the midline indicates that the bulls have lost control of the market announcing the appearance of sellers at the scene. Note that the bearish outlook will be further confirmed once the RSI crosses the midline towards the oversold zone.

Can Bitcoin’s Bearish Thesis Be Invalidated?

On the other hand, a session closure above the $39,700 resistance level can see the BTC Price cross the $40,000 psychological level to re-test the $40,500 resistance level. A fresh upswing will be validated once the Bitcoin price violates this level and breakout of the price range defined by the descending parallel channel around $41,200 increasing the odds of breaking above the $40,200 resistance zone.

This bullish outlook could be validated in the near term with the appearance of a golden cross that might happen when the 100-SMA crosses above the 200-SMA.

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