Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Bitcoin price is struggling to clear the $38,000 and $40,000 resistance levels against the US Dollar. BTC is currently consolidating above $36,000 and it remains at a risk of a downside break.
- Bitcoin is trading in a short-term bearish zone below the $38,000 and $40,000 resistance levels.
- The price is holding a key support zone near $35,600 and the 100 simple moving average (4-hours).
- There is a major contracting triangle forming with support near $35,550 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a strong decline if it clears the $35,500 and $35,000 support levels in the near term.
Bitcoin Price Correcting Gains
This past week, bitcoin price climbed higher sharply above the $38,000 resistance against the US Dollar. The BTC/USD pair even spiked above the $40,000 resistance, but it failed to continue higher.
A high was formed near $40,036 and the price settled well above the 100 simple moving average (4-hours). Recently, there was a fresh decline and the price broke the $38,000 support. It even traded below the $36,000 level and formed a low at $34,319.
The price is currently consolidating above the $35,000 level and the 100 simple moving average (4-hours). It was already rejected once near the 61.8% Fib retracement level of the recent decline from the $40,036 swing high to $34,319 low.
Source: BTCUSD on TradingView.com
There is also a major contracting triangle forming with support near $35,550 on the 4-hours chart of the BTC/USD pair. The triangle support is near the $35,000 breakdown zone and the 100 simple moving average (4-hours).
If there is a downside break below the $35,500 and $35,000 support levels, bitcoin price might accelerate lower. The next major support on the downside is near the $34,000 level. Any more losses could open the doors for a push towards the $32,000 and $30,000 support levels in the near term.
Upside Break in BTC?
If bitcoin stays above the triangle support, $35,000, and the 100 simple moving average (4-hours), it could start a fresh increase.
The main resistance on the upside is near the $38,600 zone and the triangle upper trend line. It is close to 76.4% Fib retracement level of the recent decline from the $40,036 swing high to $34,319 low. A close above the $38,600 level could open the doors for a strong surge above $40,000.
Technical indicators
4 hours MACD – The MACD for BTC/USD is losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Level – $35,500
Major Resistance Level – $38,600
