What Could Trigger Another Decline
Bitcoin extended decline below the $38,000 level against the US Dollar. BTC is recovering, but it must clear $39,000 for upside continuation.
- Bitcoin remained in a bearish zone below $40,000 and $39,000.
- The price is now trading below $39,000 and the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance near $38,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must clear the $39,000 resistance to continue higher in the near term.
Bitcoin Price Eyes Recovery Wave
Bitcoin price gained bearish momentum after it broke the $39,000 support zone. BTC even traded below the $38,000 level and settled below the 100 hourly simple moving average.
There was a spike below the $37,500 support zone. A low was formed near $37,399 and the price is now correcting higher. There was a move above the $38,000 and $38,200 resistance levels. There was also a break above a key bearish trend line with resistance near $38,000 on the hourly chart of the BTC/USD pair.
Bitcoin price even climbed above the 23.6% Fib retracement level of the key decline from the $40,349 swing high to $37,399 low. It is now facing resistance near the $38,800 level and the 100 hourly simple moving average.
The 50% Fib retracement level of the key decline from the $40,349 swing high to $37,399 low is also near the $38,800 zone to act as a resistance. The next key resistance could be near the $39,000 zone. A close above the $39,000 level could open the doors for a decent increase.
Source: BTCUSD on TradingView.com
In the stated case, the price could even surpass the $39,250 resistance. The next major resistance may perhaps be near the $40,000 zone.
Fresh Decline in BTC?
If bitcoin fails to clear the $39,000 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $38,400 level.
The next major support is seen near the $38,000 level. A clear break below the $38,000 support zone could even push the price below $37,500. Any more losses might call for a test of the $36,400 support.
Hourly MACD – The MACD is slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $38,400, followed by $38,000.
Major Resistance Levels – $38,800, $39,000 and $39,200.