Bitcoin has struggled to overcome the $38,400 resistance level against the US Dollar. BTC might resume falling if the level is not reached at $38,500.
- Bitcoin currently faces resistance at the $38,400-$38,500 levels.
- The daily simple moving average is at 100 hours and is currently trading below $38,500
- On the hourly chart for the BTC/USD pair, there is a critical bearish trendline that forms with resistance close to $38,450 (datafeed from Kraken).
- If there’s no move above $38,500, the pair may begin a new decline.
Bitcoin price faces a challenge
Following a dramatic decline in Bitcoin’s price, it found support around $36,350. BTC established a foundation and began a rebound wave higher than the $37,000 mark. It was possible to exceed the resistance of $37,500.
Bulls drove the price higher than the 50% Fib level to retrace the main decline of $39,492 from its swing high at $36,366 and then fell back to the low of $36,366. A push to the $38,000 mark was also witnessed. But, there is a significant resistance to the $38,250 price level.
Also, the $38,250 threshold is close to the Fib retracement of the critical decline from the $39.492 swing high and $36,366 lowest levels. Next is the $38,400 mark.
A crucial bearish trendline is also in place with resistance close to $38,450, on the hourly charts of BTC/USD. Clear moves above the resistance trend line could see the price reach $38,800, and then the 100 hourly moving average.
Source: BTCUSD at TradingView.com
Bullish momentum can only be achieved if the price reaches the $38,800 mark. The above mentioned case suggests that there is a possibility of the price moving higher than $39,000.
BTC – A New Decline
Bitcoin could begin a new decline if it fails to recover above the $38,400 resistance level. The $37,250 resistance zone is a support area for the downside.
Near the $37,000 mark is the next significant support. The price could gain bearish momentum if it breaks below the $37,000 resistance zone. This would allow for a rise to $36,000. Price could fall to $36,000 if there are more losses.
Indicators technical
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining towards the 50 level.
Major Support Levels – $37,250, followed by $37,000.
Major Resistance Levels – $38,250, $38,400 and $39,500.
