Bitcoin struggles to break the $38,800 resistance in relation to the US Dollar. BTC may drop sharply if it remains below the $39,000 pivot point.
- Bitcoin struggles to recover from levels above $38,800, $39,000 Resistance Levels.
- The stock price currently trades at $38,600.
- A major contracting triangle is emerging with resistance close to $38,880 in the hourly charts of the BTC/USD pair. (Data feed from Kraken).
- To begin a reasonable increase, the pair needs to clear both $38,880 & $39,000 resistance levels.
Bitcoin price eyes next break
BTC price reached support at the $37.400 level, and began a rebound wave. BTC recovered the $38,000 level, and moved slowly higher.
Clear movement above 23.6% Fib level was seen for the key fall from $40,350 swing high, to $37,400 lower. Clear movement was seen above the $38,800 resistance and 100-hourly simple moving average.
Bitcoin price did not gain any strength beyond the $39,000 mark. The key fall from $40,350 swing high, to $37,400 low, was also not retraced at 50% Fib.
On the hourly chart for the BTC/USD pair, there’s a significant contracting triangle that is near $38,880. The resistance is at the level of $38,600 and the hourly moving average.
Source: BTCUSD from TradingView.com
Next, the key resistance may be in close proximity to $38,880. An increase in the price could be possible if the close is above the levels of $38,880 or $39,000. If the previous scenario is true, then the price might even break the $39250 resistance. Next is $40,000, which will be the major resistance.
BTC – Another decline
It could lead to a further decline if bitcoin does not clear the $38,880 support zone. The $38,400 level is an immediate support for the downside.
Next major support will be found near the $38,200 and triangle lower trend lines. If the triangle support is broken, the downside could push the price to below $38,000. Below $37,400 the next support will be in place, and below that price can plunge to $36,500.
Indicators technical
Hourly MACD – The MACD is slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just near the 50 level.
Major Support Levels – $38,400, followed by $38,200.
Major Resistance Levels – $38,880, $39,000 and $39,250.
