Bitcoin price extended its upward movement above the $37,500 resistance against the US Dollar. BTC failed to liquidate $38,500 and is now correcting lower.
- Bitcoin traded above $38,000, but failed to continue rising above $38,500.
- The price is currently well above $35,000 and the 100 hourly simple moving average.
- There was a break below the major uptrend line with support near $36,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could extend its decline, but the bulls are likely to remain active near $35,000.
Bitcoin price correction gains
Bitcoin settled well above $35,000 and Extend its upward movement. BTC even broke the $37,500 resistance, but the bulls failed to gain strength to break the $38,500 barrier.
A top formed near $38,425 and the price is now moving lower. It broke the $37,000 support level to start the current correction. There was a break below the 23.6% Fib retracement level of the upside wave from the $31,052 swing low to $38,423 high.
Besides, there was a break below the major uptrend line with support near $36,500 on the hourly chart of the BTC/USD pair. However, the pair is still well above $35,000 and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
On the upside, there is an initial resistance near the $37,000 level. The first major resistance is near the $37,500 level, and the price is likely to revisit the $38,500 resistance area above it in the near term. The main resistance It is still near the $40,000 level.
Supporting Bitcoin dips?
If Bitcoin fails to clear the $37,500 resistance, its decline may extend. There is initial support on the downside near the $36,000 level.
The first major support is near the $35,500 level. The major support is now forming near the $35,000 level and the hourly 100 SMA. It is close to the 50% Fib retracement level of the upside wave from the $31,052 swing low to $38,423 high. A downside breakout below the $35,000 support area could push the price back into a bearish zone.
Hourly MACD The MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for Bitcoin/USD is now below the 50 level.
Key support levels – $36,000, followed by $35,000.
Key resistance levels – $37,500, $38,500 and $40K.