Bitcoin price is still struggling to liquidate $40,000 and $41,000 against the US Dollar. BTC could drop sharply if there is a clear break below $37,000 and $36,500.
- Bitcoin is still struggling to surpass the $40,000 and $40,500 resistance levels.
- The price is currently trading around $38,000 and the 100 hourly simple moving average.
- There is a major contracting triangle forming with support near $37,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could drop sharply if it stabilizes below the $37,000 support and the hourly 100 SMA.
Bitcoin price faces major hurdles
Bitcoin made another attempt to gain bullish momentum above $40,000 resistance. However, BTC failed to continue rising and remained within a major range below $40,500.
The last swing high formed near $4,0923 before the price started to range. It corrected lower below the 23.6% Fib retracement level of the upward move from the $31,088 swing low to the $40,923 high. The price is now trading near $38000 and Simple moving average per 100 hours.
There is also a major contracting triangle forming with support near $37,500 on the hourly chart of the BTC/USD pair. If bitcoin stays above the triangle support trend line, it may start a new rally above $39,000.
Source: BTCUSD on TradingView.com
On the upside, there is an immediate resistance near the $39,200 level. The first major resistance is near the $40,000 level and the upper trendline of the triangle. A close above the triangle resistance could open the door for a sharp increase above the $40,500 and $40,600 resistance levels in the near term.
More losses in bitcoin?
If Bitcoin fails to break above the $40,000 resistance, there is a risk of a downside breakout. There is initial support on the downside near the $37,500 level.
The first major support is near the $36000 pivot level. It is close to the 50% Fib retracement level of the upward move from the $31,088 swing low to $40,923 high. If there is a downside break below the $36,000 support level, the price may drop towards the $34,000 support area in the upcoming sessions.
Hourly MACD – The MACD is slowly gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $37,000, followed by $36,000.
Key resistance levels – $39,500, $40,000 and $40,500.