Bitcoin price is still struggling to break above $38,000. BTC is showing some bearish signs and could fall below the USD 37,150 support.
- Bitcoin is still facing heavy resistance near the USD 37,750 resistance.
- The price is trading below $37,500 and the 100 hourly Simple Moving Average.
- A connecting bearish trendline is forming with resistance near $37,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to decline if it breaks the $37,150 support.
Bitcoin Price Signals Downside Correction
Bitcoin price made another attempt to surpass the USD 37,750 resistance. BTC peaked above the USD 37,750 and USD 38,000 resistance levels. However, it failed to sustain above the USD 38,000 level.
A high was formed around $38,432 and the price responded to the downtrend. There was a move below the USD 38,000 and USD 37,750 levels. A low is formed near USD 37,151 and the price is now consolidating losses. It is showing bearish signs below the 23.6% Fib retracement level of the recent decline from the $38,432 swing high to the $37,151 low.
Bitcoin is now trading below $37,500 and the 100 hourly Simple Moving Average. On the upside, immediate resistance is around the $37,400 level. A connecting bearish trendline is also forming with resistance around $37,450 on the hourly chart of the BTC/USD pair.
The first major resistance forms around $37,750. Key resistance now lies near the $38,000 level or the 61.8% Fib retracement level from the recent decline from the $38,432 swing high to the $37,151 low. A close above the $38,000 resistance could trigger a strong upside.
Source: BTCUSD on TradingView.com
The next major resistance could be near USD 38,500, above which BTC could rise and test the USD 39,200 level. In the mentioned case, it could even rise towards the USD 40,000 resistance.
Lose more in BTC?
If Bitcoin fails to rise above the USD 38,000 resistance zone, it could start a new decline. The immediate downside support is near the USD 37,150 level.
The next major support is $36,700. If there is a move below $36,700, there is a risk of more downside. In the mentioned case, the price could fall towards the $36,000 support in the short term. The next major support or target could be $35,650.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 37,150, followed by USD 36,700.
Major resistance levels – $37,750, $38,000 and $38,500.
