Bitcoin price started a downward correction from the $ 41,000 zone against the US dollar. BTC is struggling to stay above $ 38,000 and it will likely continue to decline.
- Bitcoin failed to stay above the $ 40,000 pivot level and started a new decline.
- The price struggles to stay above $ 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 bullish trend line with support near USD 38,550.
- The pair is likely to continue lower unless there is a strong move above $ 39,200.
Bitcoin price shows bearish signs
After trading above the USD 40,000 level, Bitcoin price failed to extend profits. BTC was trading near $ 41,000 and recently started a new drop. There was a pause below the $ 40,000 and $ 39,200 support levels.
The price was even below the support level of $ 38,600 and the 100 hour simple moving average. There was also a break below a major bullish trendline with support near $ 38,550 on the hourly chart for the BTC / USD pair.
Source: BTCUSD on TradingView.com
A low is being formed near the $ 37,400 level and the price is currently rebounding. It corrected over the recent 50% decline in the fib retracement level from the high of $ 39,778 to the low of $ 37,403. It is now struggling to stay above $ 38,000 and the 100 hour simple moving average.
A bearish bearish trendline is also forming on the same chart with resistance near $ 38,880. The trendline is close to the recent 61.8% decline in the fib retracement level from the high of $ 39,778 to the low of $ 37,403.
If there is an upside break above the trendline resistance, the price could start a decent rebound towards $ 40,000. Conversely, the Bitcoin price could fall back below USD 38,000. The next major support is near the $ 37,400 level, below which the price could fall towards the $ 36,000 support zone.
New rise in BTC?
If Bitcoin manages to stay above $ 38,000 or $ 37,500, it could push it up again. Initial resistance is near the USD 38,800 zone and the bearish trendline.
A sharp break above the trendline resistance and a subsequent move above $ 39,200 could potentially result in a steady rise in upcoming sessions.
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 well below the 50 level.
Major Support Levels – $ 38,000 followed by $ 37,500.
Main Resistance Levels – $ 38,800, $ 39,200, and $ 40,000.