Bitcoin started a strong decline below the $40,000 support against the US Dollar. BTC might recover, but upsides might be limited above $38,000. Bitcoin started a major decline below the $40,000 and $38,000 support levels. The price is now trading below $38,000 and the 100 hourly simple moving average. There is a key bearish trend line with resistance near $36,500 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could continue to move down if there is a break below the $34,000 support. Bitcoin Price Extends Losses Bitcoin price started a major decline below the $42,000 and $40,000 support levels. BTC gained pace below the $38,000 level to move further into a bearish zone. It traded as low as $34,007 and is currently consolidating losses. It is now trading below $38,000 and the 100 hourly simple moving average. On the upside, an initial resistance is near the $36,200 level. There is also a key bearish trend line with resistance near $36,500 on the hourly chart of the BTC/USD pair. The trend line is near the 23.6% Fib retracement level of the recent decline from the $43,500 swing high to $34,007 low. The first major resistance is near the $36,800 level. An upside break above the $36,800 resistance could start a steady recovery wave towards $38,000. The next key resistance is near the $40,000 level, above which the bulls might aim a test of $41,200. Source: BTCUSD on TradingView.com An intermediate resistance is near the 50% Fib retracement level of the recent decline from the $43,500 swing high to $34,007 low. Any more gains may perhaps call for a move towards the $42,500 resistance zone. More Losses in BTC? If bitcoin fails to start a fresh increase above $36,500, it could start another decline. An immediate support on the downside is near the $34,500 zone. The first major support is seen near the $34,000 zone. A downside break below the $34,000 support zone may perhaps spark another major decline. The next major support is near $32,500, below which the price could even decline below the $32,000 zone. Technical indicators: Hourly MACD – The MACD is now gaining pace in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level. Major Support Levels – $34,500, followed by $34,000. Major Resistance Levels – $36,250, $36,500 and $38,000.