Bitcoin struggles to overcome the $40,000 resistance against the US Dollar. To begin a steady uptrend, BTC needs to settle at $40,000
- Bitcoin was unable to surpass the $40,000 resistance level and it corrected lower.
- The daily simple moving average is at the hourly low of $39,000, and it’s trading lower than that price.
- The hourly chart for the USD/BTC pair showed a breakout below the short-term contracting triangle, with support at $38,800 (data feed Kraken).
- If the pair closes above $40,000, it could trigger a significant increase.
Bitcoin Price Faces Key Resistance
Bitcoin prices remained positive above the $38,00 pivot mark. BTC also broke through the $39,000.500 resistance level. The bulls attempted to get past the $40,000 resistance level but failed.
Before the downside correction, the swing high formed at $39,888. The support levels of $39,000 and 38,000 were breached. A break was also observed below the short-term contracting triangle, with support at $38,800 in the hourly chart for the BTC/USD pair.
This pair currently trades at $39,000 below the simple moving average of 100 hours. The price has been consolidating its losses and has formed a low near $37,028.
Surprisingly, immediate resistance lies near the $38,200 and 100 hourly SMA levels. Next is the 38,000500 level. The Fib level is close to the 50% Fib Retracement level for the downmove from the $3988 swing high and $37,028 lower.
Source: BTCUSD at TradingView.com
Now, the main resistance lies at or near $38,800. The 61.8% Fib Retracement level is the lowest point of the downmove from $39,888 high to $37.028 low. Clear moves higher than the $38,800 resistance may send it further up. It could attempt to move over $40,000.
BTC Dips Limited
A downside correction could occur if bitcoin does not clear the $38,800 resistance area. Support for the downside lies near the $37,000.
Next major support will be seen at the $36,400 mark. The price could gain bearish momentum to $35,000. If the downside breaks below the $36,400 level, it might be able to break through the support.
Indicators technical
Hourly MACD – The MACD is now losing pace 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, followed by $36,400.
Major Resistance Levels – $38,200, $38,800 and $40,000.
