Bitcoin Faces Hurdle, Why BTC Could Resume Downtrend


Bitcoin struggled to clear the $38,800 resistance zone against the US dollar. BTC is moving lower and it could fall below the $35,000 support level.

Bitcoin started an upward correction but failed to clear the $38,800 resistance zone. The price is now trading below $37,500 and the 100 hourly simple moving average. There was a break below a key bullish trendline with support near $37,650 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair may continue to decline if it continues below the USD 38,000 resistance zone.

Bitcoin Price Starts Falling Again

Bitcoin price recovered above the $37,000 resistance zone. BTC even climbed above the $38,000 resistance zone and the 100 hourly simple moving average.

However, the price failed to clear the $38,800 resistance zone. It peaked near $38,719 and the price started another decline. There was a move below the $38,000 support level. The bears pushed the price below the 50% Fib retracement level of the upward move from the $35,561 swing low to the $38,719 high.

In addition, there was a break below a key bullish trendline with support near $37,650 on the hourly chart of the BTC/USD pair. The pair traded below $37,200 and the 100 hourly simple moving average.

It is now testing the $36,800 support zone. The level quoted is near the Fib retracement level of 61.8% of the upward move from the $35,561 swing low to $38,719 high. On the upside, an initial resistance is near the $37,400 level and the 100-hour SMA.

Source: BTCUSD on TradingView.com

The first major resistance is near the $38,000 zone. The main resistance is still near the $38,800 zone. An upward breach above the $38,800 resistance could spark steady upward movement. The next key resistance is near the $40,000 level, above which the bulls may gain strength.

Lose more in BTC?

If bitcoin fails to start a fresh rise above $38,000, it could continue to fall. An immediate support on the downside is near the $36,000 zone.

The first major support is seen near the $35,500 zone. A downward breach below the $35,500 support zone may push the price towards the $34,000 support zone.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

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

Key support levels – $36,500, followed by $35,500.

Major resistance levels – $37,400, $38,000 and $38,800.

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