Bitcoin is struggling to remove the $38,800 resistance against the US Dollar. BTC could drop sharply if it stays below the $39,000 pivot level.
- Bitcoin is struggling to recover above the $38,800 and $39,000 resistance levels.
- The price is now trading below $38,600 and the 100 hourly simple moving average.
- There is a major contracting triangle forming with resistance near $38,880 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must cross the $38,880 and $39,000 resistance levels to start a proper increase.
Bitcoin price eyes on the next break
Bitcoin price finds support near $37,400 level The wave of recovery has begun. BTC managed to recover the $38,000 level and slowly moved higher.
There was a clear move above the 23.6% Fib retracement level of the main decline from the $40,350 swing high to $37,400. The price tried to move clearly above the $38,800 resistance level and 100-hour simple moving average.
However, Bitcoin price struggled to gain strength above the $39,000 level. It also failed to stabilize above the 50% Fib retracement level of the major decline from $40,350 to the high at $37,400.
Besides, there is a major contracting triangle forming with resistance near $38,880 on the hourly chart of the BTC/USD pair. It is now facing resistance near the $38,600 level and the hourly simple moving average.
Source: BTCUSD on TradingView.com
The next major resistance could be near the $38880 area. A close above the $38,880 and $39,000 levels could open the door for a decent increase. In the mentioned case, the price could surpass the $39.250 resistance. The next major resistance appears near the $40,000 level.
Another drop in bitcoin?
If Bitcoin fails to clear the $38,880 resistance area, it may start a new decline. There is immediate support on the downside near the $38,400 level.
The next major support appears near the $38,200 level and the triangle’s lower trendline. A break-down below the triangle support could push the price below $38,000. The next major support is $37,400, below which the price could drop to $36,500.
Hourly MACD The MACD is slowly losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level.
Key support levels – $38,400, followed by $38,200.
Key resistance levels – $38,880, $39,000, $39,250.