Bitcoin is facing resistance near $38,200 against the US Dollar. BTC remains at risk of further downside unless there is a move above the $39,000 resistance.
- Bitcoin is facing significant resistance near the $38,200 and $39,000 levels.
- The price is now trading below $38,500 and the 100 hourly simple moving average.
- There is a major bearish trend line with resistance near $38,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must cross the $38,350 and $38,800 resistance levels to start a steady increase.
Bitcoin price remains in a downtrend
Bitcoin price attempted a bullish breakout above The $38,800 and $39,000 resistance levels. However, BTC struggled to clear the $39,000 resistance area and started a new low.
A swing high formed near $39.170 and the price started a new decline. There was a clear move below the $38,800 and $38,500 levels. The bears even pushed the price below the $38,000 level and there was a lower close 100-hour simple moving average.
The bottom formed near $37.507 and the price is now correcting losses. There was a move above the 23.6% Fib retracement level of the recent decline from $39,169 high, swing high to $37.507 low.
Bitcoin price is now facing resistance near the $38,350 level and the 100 hourly simple moving average. There is also a major bearish trend line with resistance near $38,350 on the hourly chart of the BTC/USD pair. The trend line is near the 50% Fib retracement level of the recent decline from $39169, the high to $37507 low.
Source: BTCUSD on TradingView.com
The next major resistance might be near the $38,800 area. A close above the $38,800 resistance could increase the chances of a clear move above the $39,000 resistance area.
More losses in bitcoin?
If Bitcoin fails to clear the $38,350 resistance area, it may continue to move lower. There is immediate support on the downside near the $37,700 level.
The next major support is seen near the $37,550 level. A break-down below the $37,550 support level and the recent bottom could lead to severe losses. The next major support is $36,500, below which the price could drop to $35,000.
Hourly MACD – The MACD is slowly losing its momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $37,700, followed by $37,550.
Key resistance levels – $38,350, $38,800 and $39,000.