Bitcoin price once again failed to break the USD 38,000 resistance zone. BTC is likely to form a double top and could fall towards the USD 34,500 support.
- Bitcoin started a new decline from the USD 38,000 resistance zone.
- The price is trading below $36,750 and the 100 hourly Simple Moving Average.
- A connecting bullish trendline is forming with support near $36,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could fall further if there is a break below the USD 35,950 support.
Bitcoin price forms a double top scenario
Bitcoin price made another attempt to clear the USD 38,000 resistance. However, BTC failed to clear the USD 38,000 resistance and started a new decline. It looks like the price is forming a double top pattern near the $38,000 zone.
There was a sharp move below the USD 37,200 and USD 37,000 levels. The price even spiked below the $36,500 level and the 100 hourly Simple Moving Average. Finally, the bulls appeared near the USD 35,500 level. A low was formed near USD 35,517 and the price is now correcting losses.
The price climbed above the 23.6% Fib retracement level of the downward move from the $37,950 swing high to the $35,517 low. Bitcoin is now trading below $36,750 and the 100 hourly Simple Moving Average. A connecting bullish trendline is also forming with support near $36,250 on the hourly chart of the BTC/USD pair.
On the upside, immediate resistance is around the $36,700 level. The next major resistance could be near $37,000 or 61.8% Fib retracement level of the downward move from the $37,950 swing high to the $35,517 low.
Source: BTCUSD on TradingView.com
A close above the $37,000 resistance could trigger a strong upside. The first major resistance is near USD 37,500, above which the price could accelerate further. In the said case, it could test the USD 38,000 level. Any further gains could send BTC towards the $39,200 level.
Lose more in BTC?
If Bitcoin fails to rise above the $37,000 resistance zone, it could continue falling to complete the double top pattern. The immediate downside support is near the USD 36,200 level.
The next major support is $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 USD 35,500 support in the short term. The next major support or target could be $34,500.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 36,200, followed by USD 35,500.
Major resistance levels – $36,700, $37,000 and $38,000.
