Bitcoin price is still struggling to settle above $38,000. BTC is showing some signs of weakness and could fall below the $37,150 support.
- Bitcoin still faces significant resistance near the $37,750 resistance.
- The price is trading below $37,500 and the 100-hour simple moving average.
- The hourly chart of the BTC/USD pair (data feed from Kraken) shows a bearish trend line tying with resistance near $37,450.
- A break above the support level of $37,150 could continue the decline for the currency pair.
Fixing Bitcoin Price Signal Shortcomings
Bitcoin price made another attempt to break above the $37,750 resistance. BTC surged above the $37,750 and $38,000 resistance levels. However, it failed to maintain the $38,000 level.
A high was made near $38,432 and the price reacted to the downtrend. There was movement below the $38,000 and $37,750 levels. A low was formed near $37,151 and the price is currently consolidating losses. There are signs of weakness below the 23.6% Fib retracement level following the recent decline from the $38,432 swing high to the $37,151 low.
Bitcoin is currently trading below $37,500 and the 100-hour simple moving average. On the other hand, immediate resistance is close to the $37,400 level. On the hourly chart of the BTC/USD pair, there is also a bearish trend line connecting with resistance near $37,450.
The first major resistance is forming near $37,750. Key resistance is currently near the $38,000 level or the 61.8% Fib retracement level of the recent decline from the $38,432 swing high to the $37,151 low. A break above the $38,000 resistance could initiate a strong rally.
Source: TradingView.com BTCUSD
The next major resistance could be near $38,500, above which BTC could rise to test the $39,200 level. If indicated, a bounce towards the $40,000 resistance may occur.
Will there be more losses in BTC?
If Bitcoin fails to rise above the $38,000 resistance zone, it could begin a new downtrend. Immediate support for the downside is near the $37,150 level.
The next major support is at $36,700. There is further downside risk if it falls below $36,700. If indicated, the price may fall towards the $36,000 support in the near term. The next major support or target could be $35,650.
Technical indicators:
Hourly MACD – MACD is now picking up speed in bearish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $37,150, then $36,700.
Key resistance levels – $37,750, $38,000 and $38,500.