Bitcoin Remains At Risk, Why $38K Holds The Key For Fresh Surge

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Bitcoin price is struggling to gain momentum against the US dollar above $ 37,500 and $ 37,800. BTC could decline again if it breaks the $ 36,000 support zone.

  • Bitcoin faces strong resistance near the USD 37,800 and USD 38,000 resistance levels.
  • The price is now trading just above the $ 36,500 support and the 100-hour simple moving average.
  • A major contraction triangle is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with support near USD 36,100.
  • The pair will have to break the $ 38,000 resistance to start a new spike in the short term.

Bitcoin price is facing an upward challenge

After a decent closing price above $ 35,000, Bitcoin price started a new uptrend. BTC has broken through the $ 35,500 and $ 36,000 resistance levels to enter a short-term bullish zone.

The price even rose above the $ 37,000 level and was above the 100-hour simple moving average. However, the price is still facing strong resistance near the $ 37,800 and $ 38,000 resistance levels. A high is being formed near $ 37,294 and the price is currently correcting lower.

There was a pause below the $ 36,800 level. An initial downward move is near the $ 36,500 level and the 100-hour simple moving average. The next support is near the 50% Fib retracement level of the recent rebound from the low of $ 35,407 to the high of $ 37,294.

Source: BTCUSD on TradingView.com

A major contraction triangle is also forming on the hourly chart of the BTC / USD pair with support near USD 36,100. The triangle support is close to the Fib retracement level of 61.8% of the recent rebound from the low of $ 35,407 to the high of $ 37,294.

If there is a downside break below the triangle support, Bitcoin price could drop further. The next big support is near the $ 34,800 level where the bulls are likely to take a stand.

Chances of an uptrend in BTC

If Bitcoin stays above the USD 36,500 and USD 36,100 support levels, another attempt could be made to remove the USD 37,500 and USD 37,800 resistance levels.

The main resistance is still near the $ 38,000 zone. A closing price above the $ 38,000 zone is a must for the price to surge sharply in the upcoming sessions.

Technical indicators:

Hourly MACD – The MACD is slowly losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now well above the 50 level.

Major support levels – $ 36,500 followed by $ 36,100.

Main Resistance Levels – $ 37,250, $ 37,800, and $ 38,000.