Bitcoin price made another attempt to remove the $ 38,000 resistance against the US Dollar, but it failed. BTC is correcting lower, but you can find offers close to the 100 hourly SMA.
Bitcoin is still facing stiff resistance near the $ 38,000 zone. The price is currently trading well above $ 36,500 and the 100 hourly simple moving average. A connecting uptrend line is forming with support near $ 36,400 on the hourly chart of the BTC / USD pair (data feed from Kraken). The pair must stay above $ 36,000 and the 100 hourly SMA to remain in a positive zone.
Bitcoin price points to a new rise
Bitcoin started a decent rally above the $ 36,500 resistance zone. BTC even broke the $ 37,000 resistance level and settled well above the 100 hourly simple moving average.
The bulls made another major attempt to break above the $ 38,000 barrier. However, they were unable to gain traction and a new weekly high was formed near the $ 38,200 level. The price is now correcting lower and is trading below the $ 37,800 level.
There was a break below the 23.6% Fib retracement level of the recent wave from the low of $ 35,928 to the high of $ 38,200. An immediate support to the downside is near the $ 37,000 level.
Source: BTCUSD on TradingView.com
The 50% Fib retracement level of the recent wave from the $ 35,928 low to $ 38,200 high is also close to the $ 37,000 zone to act as support. A connecting uptrend line is also forming with support near $ 36,400 on the hourly chart of the BTC / USD pair.
On the upside, an immediate resistance is near the $ 37,600 level. The first major resistance is near the $ 37,850 level. The main barrier is still near the $ 38,000 zone. A clear break above the $ 38,000 zone is needed to move towards the $ 40,000 level.
Break to the downside in BTC?
If bitcoin fails to clear the $ 38,000 resistance, it could correct lower. An initial support on the downside is near the $ 37,000 level.
The first major support is near the $ 36,500 level and the 100 hourly simple moving average. If there is a break to the downside below the $ 36,500 support and then the trend line, the price could start a major decline in the short term.
Hourly MACD – The MACD is slowly picking up pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now just below the 50 level.
Major Support Levels – $ 36,500, followed by $ 36,000.
Major Resistance Levels – $ 37,800, $ 38,000, and $ 40,000.