Bitcoin continues its struggle above the $38,800 resistance zone. According to technical analysis by NewsBTC’s Aayush Jindal:
Bitcoin Consolidates
Bitcoin remained strong above the $37,500 pivot level. It even climbed above the $39,000 level and settled above the 100 hourly simple moving average. A local top was formed near the $39,290 level and there was a minor decline below the $38,800 level. Bitcoin traded below the 23.6% Fib retracement level of the recent rise from the $36,665 high to $39,290 high. However, it is still trading above $38,000 and the 100 hourly simple moving average.
The first resistance is near the $38,800 level. The first major resistance is near the $39,200 area. A clear move above the $39,200 zone could push the price towards the $40,000 resistance zone. Further gains could open the doors for a bigger increase in the coming sessions. The next major resistance above $40,000 could be near the $41,200 level.
Will Bitcoin Drop?
Jindal says that if Bitcoin fails to start a fresh increase above $39,200, it could initiate a downside correction. According to him, an immediate support is near the $38,500 area.
The first major support is seen near the $38,000 region. This is close to the 50% Fib retracement level of the recent rise from the $36,665 high to $39,290 high. The main support is near the trendline and $37,500. A downside break below the $37,500 support zone could start a steep decline in the near term.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD is now losing momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 50 level.
- Main Support Levels – $38,000 followed by $37,500
- Main Resistance Levels – $38,800, 39,200 and $40,000
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