Bitcoin Fails Near Key Zone, Can Bulls Save the Day?
Bitcoin attempted a major upward breach above the $38,500 resistance against the US dollar. BTC failed to release $38,500 and started another decline.
Bitcoin struggled to gain pace above the USD 38,200 and USD 38,500 resistance levels. The price is now trading below $37,000 and the 100 hourly simple moving average. There was a break below a key bullish trendline with support near $37,150 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could start another rally if the bulls are able to protect the $35,500 support zone.
Bitcoin price continues to struggle
Bitcoin price started a recovery wave above the $36,000 and $37,000 levels. In fact, BTC was able to clear the $37,500 level and the 100 hourly simple moving average.
However, the bulls faced strong resistance near the USD 38,200 and USD 38,500 levels. It failed to surpass the 50% Fib retracement level of the main decline from the $43,490 swing high to $32,950 low. A high was formed near $38,490 and the price started another decline.
There was a break below the $37,200 support zone. In addition, there was a break below a key bullish trendline with support near $37,150 on the hourly chart of the BTC/USD pair.
Bitcoin price is now trading below $37,000 and the 100 hourly simple moving average. It is testing the 50% Fib retracement level of the upward move from the $32,940 swing low to $38,490 high. On the upside, an initial resistance is near the $37,000 level.
Source: BTCUSD on TradingView.com
The first major resistance is near the $38,000 zone. The main resistance is still near the $38,500 zone. An upward breach above the $38,500 resistance could spark a steady upward move. The next key resistance is near the USD 39,200 level.
Lose more in BTC?
If bitcoin fails to start a fresh rise above $38,000, it could trigger another drop. An immediate support on the downside is near the $35,700 zone.
The first major support is seen near the $35,000 zone. It is near the 61.8% Fib retracement level of the upward move from the $32,940 swing low to $38,490 high. A downward breach below the $35,000 support zone might push the price towards the $33,200 support zone.
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 – $35,700 followed by $35,000.
Major Resistance Levels – $37,000, $38,000 and $38,500.