Bitcoin price cut losses and rose above $37,750. BTC has gained speed but is still struggling to break out of the $38,500 resistance area.
- Bitcoin again faces significant resistance near $38,500.
- The price is trading above $37,500 and the 100-hour simple moving average.
- On the hourly chart of the BTC/USD pair (data feed from Kraken), a breakout occurred above the main bearish trendline with resistance near $37,250.
- The pair is struggling to clear the resistance of $38,500 and correct the uptrend.
Bitcoin price decline continues
Bitcoin price revisited the $36,720 support zone. BTC avoided a collapse and began a new increase above the $37,000 level. There was a clear move above the $37,500 level.
Moreover, on the hourly chart of the BTC/USD pair, it has broken a major bearish trend line with resistance near $37,250. The pair surged above the $37,750 resistance. However, the downtrend became active again near the $38,500 resistance.
A high was made near $38,390 and the price is currently correcting an upward trend. It moved below the 23.6% Fib retracement level of the recent wave from the $36,720 swing low to the $38,390 high.
Bitcoin is currently trading above $37,500 and the 100-hour simple moving average. On the other hand, immediate resistance is close to the $38,200 level. The first major resistance is forming near $38,400. Key resistance is currently near the $38,500 level. A break above the $38,500 resistance could initiate a strong rally.
Source: TradingView.com BTCUSD
The next major resistance could be near $39,200, above which BTC could rise towards the $39,500 level. More gains could push BTC towards $40,000 resistance.
Another drop in BTC?
If Bitcoin fails to rise above the $38,400 resistance zone, another decline could begin. Immediate support for the downside is near the $37,600 level.
The next major support is $37,500 or the 50% Fib retracement level of the recent wave from the $36,720 swing low to the $38,390 high. There is further downside risk if it falls below $37,500. If indicated, the price may fall towards the $36,720 support in the near term.
Technical indicators:
Hourly MACD – MACD is now losing speed in bullish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $37,600, then $37,500.
Key resistance levels – $38,400, $38,500 and $39,200.