Bitcoin Corrects From $40K, Why $35K Could Protect Losses

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Bitcoin price surged above the $ 40,000 level before correcting against the US dollar. BTC was trading below $ 38,000 but is likely to find strong support near $ 36,500 or $ 35,200

  • Bitcoin extended its rally above the USD 38,000 and USD 40,000 resistance levels.
  • The price began a downward correction from a new all-time high of $ 40,400 but is still well above the 100-hour simple moving average.
  • On the hourly chart of the BTC / USD pair (data feed from Kraken) there was a break below a major bullish trendline with support near USD 37,500.
  • The pair is likely to find strong buying interest near the $ 36,500 and $ 35,200 levels.

Bitcoin price rises to $ 40,000

Bitcoin price rose sharply above the $ 37,000 resistance level. BTC even broke the USD 38,000 and USD 38,500 resistance levels. Eventually there was a surge above the $ 40,000 level.

The price hit a new all-time high of $ 40,400, well above the 100-hour simple moving average. It began a downward correction and was trading below the $ 38,000 level. There was a break below the Fib retracement level of 23.6% of the move up from a swing low of $ 30,000 to a swing high of $ 40,365.

There was also a break below a major bullish trendline with support near USD 37,500 on the hourly chart for the BTC / USD pair. The pair is currently consolidating near the $ 37,000 level.

Source: BTCUSD on TradingView.com

The next major support is near the $ 36,500 level (a multi-touch zone). On the upside, the broken trendline could act as short-term resistance near $ 37,500 and $ 37,800. To start a new raise, the price must be above the $ 38,000 level. The next major resistance is at $ 38,880, above which price could hit the $ 40,000 level again.

Dips supported in BTC?

If Bitcoin fails to hit the USD 38,000 and USD 38,880 levels, it could start another downward trend. Initial downside support is near the USD 36,600 and USD 36,500 levels.

The main support appears to be forming near the USD 35,200 level. It is close to the 50% Fib retracement level of the move up from the $ 30,000 swing low to the $ 40,365 swing high.

Technical indicators:

Hourly MACD – The MACD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD just fell below the 50 level.

Major support levels – $ 36,500 followed by $ 35,200.

Main Resistance Levels – $ 38,000, $ 38,880, and $ 39,800.