Bitcoin price is consolidating gains below the $37,000 zone. BTC could gain bullish momentum if it sees a close above the USD 36,800 and USD 37,000 levels.
- Bitcoin holds gains above the $36,000 support zone.
- The price is trading below $37,000 and the 100 hourly Simple Moving Average.
- A major bearish trendline is forming with resistance near $36,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could make another attempt to gain strength above $37,000.
Bitcoin price provides important support
Bitcoin price made another attempt to clear the USD 37,500 resistance. However, BTC failed to rise further towards the USD 38,000 resistance. A high was formed near $37,423 and the price started a downward correction.
There was a move below the $37,000 pivot level. The price fell below the USD 36,500 level but remained above USD 36,000. A low is formed near $36,183 and the price is now rising. There was a move above the USD 36,450 level. The price is trading above the 23.6% Fib retracement level from the recent decline from the $37,423 swing high to the $36,183 low.
Bitcoin is now trading below $37,000 and the 100 hourly Simple Moving Average. There is also a major bearish trendline forming with resistance around $36,600 on the hourly chart of the BTC/USD pair.
On the upside, immediate resistance is around the $36,600 level. The next major resistance could be near $36,800, or the 50% Fib retracement level from the recent decline from the $37,423 swing high to the $36,183 low. The first major resistance is near $37,000, above which the price could accelerate further.
Source: BTCUSD on TradingView.com
In the said case, it could test the USD 37,500 level. Any further gains could send BTC towards the $38,000 level, above which the price could gain bullish momentum and rally towards $40,000.
Another drop in BTC?
If Bitcoin fails to rise above the USD 36,800 resistance zone, it could continue to decline. The immediate downside support is near the $36,180 level.
The next major support is near $36,000. If there is a move below $36,000, there is a risk of more downside. In the mentioned case, the price could fall towards the key support at USD 35,500 in the short term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 36,180, followed by USD 36,000.
Major resistance levels – $36,600, $36,800 and $37,000.