Bitcoin price rose above the $38,000 resistance against the US Dollar, but failed near $39,500. BTC is correcting lower and may fall if it breaks the $37,000 support.
- Bitcoin failed to gain momentum to break above $39,500 and $40,000.
- The price is currently trading above $37,000 and the 100 hourly simple moving average.
- There is a major ascending channel forming with support near $37,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must stay above $37,000 and the 100 hourly SMA to avoid a major decline.
Bitcoin price gains
Bitcoin started a nice increase above the $37,500 resistance area. Even BTC broke a file Resistance $38000 It settled above the 100-hour simple moving average.
The bulls gained strength to push above the $39,000 level. However, they struggled to move towards the $40K level. The price reached a top near the $39,500 level and recently started declining again. There was a break below the $38,500 and $38,000 levels.
Bitcoin traded below the 50% Fib retracement level of the upward move from the $35,925 swing low to $39,500. It is currently trading above $37,000 and Simple moving average per 100 hours.
There is immediate support on the downside near the $37,500 level. There is also a major ascending channel forming with support near $37,400 on the hourly chart of the BTC/USD pair. The channel support is near the 61.8% Fib retracement level of the upward move from the $35,925 swing low to the $39,500 high.
Source: BTCUSD on TradingView.com
On the upside, there is an immediate resistance near the $38,200 level. The first major resistance is near the $39,500 level. The main resistance is still near the $40,000 area. A clear break above the $40,000 level could set the pace for an even bigger increase.
Broken downside in bitcoin?
If Bitcoin fails to get rid of the $38,500 resistance, its decline may extend. There is initial support on the downside near the $37,500 level.
The first major support is near the $37,200 level and the 100 hourly simple moving average. If there is a downside break below the $37,200 and $37,000 support, the price may start a sharp decline towards $35,000.
Hourly MACD – The MACD is now 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 – $37,200, followed by $37,000.
Key resistance levels – $38,500, $39,500 and $40K.