Bitcoin price started a downside correction from well above $40,000 against the US Dollar. BTC is now trading near a major support at $38,000 as the bulls are currently active.
- Bitcoin started a downside correction after it failed to stay above $40,000.
- The price is currently just below $39,000 and the 100 hourly simple moving average.
- There was a break below the main contracting triangle with support near $39,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to start a new increase unless there is a close below the $38000 support level.
Bitcoin price revises major support
Bitcoin peaked near $41,350 before starting a downward correction. BTC consolidated above $40,000 for some time before the bulls failed to protect the aforementioned support area.
The price dropped below the $40,000 and $39,500 support levels. There was also a break below the main contracting triangle with support near $39,900 on the hourly chart of the BTC/USD pair. The pair even broke the $38,500 support level and Simple moving average per 100 hours.
However, the bulls are protecting the $38,000 support area (the last breakout area). The price is now consolidating above the $38000 level. It is also just below $39,000 and the 100 hourly simple moving average. The 23.6% Fib retracement level of the recent decline from $41,350 to the low of $38,154 is also near the hourly 100 simple moving average.
Source: BTCUSD on TradingView.com
The first major resistance is near the $39.750 level. It is close to the 50% Fib retracement level of the recent decline from the $41,350 high to $38,154 low.
The main resistance is now forming near the $40,000 area. A clear bullish break above the $40,000 area is likely to set the pace for a new impulse in the near term.
More losses in bitcoin?
If Bitcoin fails to get rid of the $39,750 and $40,000 resistances, its decline may extend. There is initial support on the downside near the $38,150 level.
The first major support is near the $38,000 level. A break-down below the recent low and $38,000 could open the door for a bigger drop towards $36,500.
Hourly MACD – The MACD is slowly moving into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is rising towards the 50 level.
Key support levels – $38,150, followed by $38,000.
Key resistance levels – $39,500, $39,750, $40,000.