Bitcoin price began a downward correction after breaking $ 39,000 against the US dollar. BTC has tested the $ 35,000 key support and is currently consolidating losses.
- Bitcoin started a downward correction below the USD 39,000 and USD 38,000 support levels.
- The price is now trading well below $ 38,000 and the 100 hour simple moving average.
- The hourly chart of the BTC / USD pair (data feed from Kraken) broke below a major contraction triangle with support near USD 40,000.
- The pair holds large support near $ 35,000 below which it could dip another $ 2,000.
Bitcoin price corrected lower
After the Bitcoin price formed near the USD 42,000 level for a short period, a downward correction began. BTC broke some key supports near the $ 40,000 level to begin the current correction.
There was also a break below a major contraction triangle with support near USD 40,000 on the hourly chart of the BTC / USD pair. The pair was well below the $ 38,000 level and the 100 hour simple moving average.
Source: BTCUSD on TradingView.com
There was also a surge below the 50% Fib retracement level of the move up from the $ 29,894 low to the $ 42,068 high. However, the bulls have been seen active near the $ 35,000 support zone (the last major breakout zone).
The next major support is near the $ 34,500 level. It is close to the 61.8% Fib retracement level of the move up from the $ 29,894 low to the $ 42,068 high. If Bitcoin doesn’t stay above the $ 35,000 and $ 34,500 support levels, it could see another decline. The next major support below $ 34,500 is near the $ 32,000 level.
New rise in BTC?
If Bitcoin stays above the USD 34,500 and USD 35,000 support levels, it could cause another spike. Initial resistance to the upside is near the $ 37,800 level. There is also a contracting triangle with resistance near $ 38,000.
A sharp break above the $ 37,800 and $ 38,000 resistance levels could potentially trigger a bullish wave. The next major resistance is near the $ 39,200 level and the 100-hour simple moving average (the most recent failure zone). A closing price above $ 39,200 could increase the chances of a new wave to the $ 42,000 level.
Technical indicators:
Hourly MACD – The MACD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD fell below the 40 level.
Major Support Levels – $ 35,000, followed by $ 34,500.
Main Resistance Levels – $ 37,800, $ 38,000, and $ 39,200.
