Monday, October 25

Bitcoin (BTC) Price Analysis: Erases Gains, What Are The Key Levels?

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Bitcoin price climbed above the $38,000 resistance against the US Dollar but failed near $39,500. BTC is now correcting. According to technical analysis by NewsBTC’s Aayush Jindal:

  • Bitcoin failed to gain momentum for a break above $39,500 and $40,000.
  • There is a major ascending channel forming with support near $37,400 on the hourly chart of the BTC/USD pair (data from Kraken).
  • The pair must stay above $37,000 and the 100 hourly SMA to avoid a major decline.

Bitcoin (BTC) Price Erases Gains

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Bitcoin started a decent increase above the $37,500 resistance zone. BTC even broke the $38,000 resistance level and settled well above the 100 hourly simple moving average.

The bulls gained strength to climb above the $39,000 level. They struggled to move towards the $40,000 level. The price climbed above the $39,500 level but started a fresh decline from there. There was a break below the $38,500 and $38,000 levels.

Bitcoin traded below the 50% Fib retracement level of the upward move from the $35,925 high to $39,500 high.

There is also a major ascending channel forming with support near $37,400 on the hourly chart of the BTC/USD pair. The channel support is near the 61.8% Fib retracement level of the upward move from the $35,925 high to $39,500 high.

bitcoin btc price analysis deletes its gains what are the important levels

On the upside, an immediate resistance is near the $38,200 level. The first major resistance is near the $39,500 level. The main resistance is still near the $40,000 zone. A clear break above the $40,000 level could set the pace for a larger rise.

Will Bitcoin (BTC) Drop?

If Bitcoin fails to break the $38,500 resistance, it could continue its decline. If there is a downside break below the $37,000 support, the price could start a sharp decline towards $35,000.

Technical Indicators

  • Hourly MACD – The MACD is now gaining momentum in the bearish zone.
  • Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
  • Major Support Levels – 37,200 then $37,000
  • Major Resistance Levels – $38,500, 39,500 and $40,000

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