Bitcoin price began a downward correction due to the $ 38,000 resistance against the US dollar. BTC holds the $ 36,000 support and could rise again in the short term.
- Bitcoin extended its surge and even solved the USD 38,000 resistance (as discussed yesterday).
- The price is still above $ 36,375 and the 100-hour simple moving average.
- A large contraction triangle is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with support near USD 37,350 and USD 36,000.
- The pair is likely to break the triangle resistance at $ 37,500 to start a fresh spike.
Bitcoin Price Holding Key Support
Bitcoin price began a downward correction after trading above the $ 38,500 level. BTC failed to stay above the $ 38,000 level and even broke the $ 37,500 support level.
The price even passed the $ 37,000 level but the bulls were active above the $ 36,000 level. A low is being formed near $ 36,220 and the price is currently consolidating in a range. It rose above the recent 23.6% decline in fib retracement levels from a high of $ 38,716 to a low of $ 36,220.
Bitcoin is still trading above $ 36,375 and the 100 hour simple moving average. A large contraction triangle is also forming on the hourly chart of the BTC / USD pair with support near USD 37,350 and USD 36,000.
Source: BTCUSD on TradingView.com
The triangle resistance is close to the $ 37,500 level. It is close to the recent 50% drop in the fib retracement level from $ 38,716 to $ 36,220. If there is a significant break above the triangle resistance and $ 37,500, there is a possibility of a steady increase.
The next major resistance is near the $ 38,000 level. A successful close above the $ 38,000 level could set the pace for a move towards the $ 38,800 and $ 39,000 levels.
Downward pause at BTC?
If Bitcoin doesn’t remove the USD 37,500 resistance and upper trendline of the triangle, it could go further down. The first major support is near the lower trendline of the triangle at $ 36,350.
The next major support is near the $ 36,000 level below which the price could test the 100-hour SMA. Further losses could move the price towards a $ 35,000 support in the short term.
Technical indicators:
Hourly MACD – The MACD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now just below the 50 level.
Major Support Levels – $ 36,350, followed by $ 36,000.
Main Resistance Levels – $ 37,500, $ 38,000, and $ 38,800.
