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
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.
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.
- 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
Hello there! My name is Oktay from Tokensboss editors. I introduce myself as a business graduate and writer. I have been doing research on cryptocurrencies and new business lines for over 2 years.