Bitcoin price is consolidating above the $37,500 support area. BTC could attempt a strong rally if there is a clear move above the $38,400 resistance level.
- Bitcoin is still struggling to break the $38,500 resistance zone.
- The price is trading above $37,400 and the 100-hour simple moving average.
- The hourly chart of the BTC/USD pair (data feed from Kraken) shows a major bullish trendline forming with support near $37,450.
- The pair may begin another rise and attempt to clear the $38,500 resistance level.
Bitcoin price remains supported
Bitcoin price is still trading below the $38,500 resistance zone. The last swing high was formed near $38,419 before a downward correction.
BTC fell below the $38,000 level. It moved below the 23.6% Fib retracement level of the key increase from the $36,721 swing low to the $38,419 high. The price surged below the $37,650 support level, but the downside was limited.
A low was formed near $37,501 and the price is currently consolidating. It is currently testing the 50% Fib retracement level from the $38,419 swing high to the $37,501 low.
Bitcoin is currently trading above $37,400 and the 100-hour simple moving average. The hourly chart of the BTC/USD pair also has a major bullish trend line forming with support near $37,450. On the other hand, immediate resistance is close to the $38,000 level.
The first major resistance forms near $38,050 or the 61.8% Fib retracement level of the recent decline from the $38,419 swing high to the $37,501 low, above which the price may revisit the $38,400 resistance area.
Source: TradingView.com BTCUSD
A break above the $38,400 resistance could trigger a new rally. 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.
Are there more downsides to BTC?
If Bitcoin fails to rise above the $38,050 resistance zone, another decline could begin. Immediate support on the downside is near the $37,600 level or the 100-hourly SMA.
The next major support is near $37,450 and the trend line. There is further downside risk if the price falls below $37,450. If indicated, the price may fall towards the $36,720 support in the near term.
Technical indicators:
Hourly MACD – MACD is now gaining 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 $37,450.
Key resistance levels – $38,050, $38,400 and $39,500.