Bitcoin is struggling to recover above the $38,400 resistance zone. According to technical analysis by NewsBTC’s Aayush Jindal, if it stays below the $38,500 level, it could continue to decline.
Bitcoin Faces Barriers
Bitcoin started a recovery wave above the $37,000 level. The bulls pushed the price above the 50% Fib retracement level of the low from the $39,492 low to $36,366 low. However, the price is currently facing a strong resistance near the $38,250 level. The 61.8% Fib retracement level of the drop from the $39,492 low to $36,366 low is also near the $38,250 level. The next key resistance is near the $38,400 level. There is also a key bearish trend line forming with resistance near $38,450 on the hourly chart of the
BTC/USD pair. A clear move above the trendline resistance could send the price towards $38,800 and the 100 hourly simple moving average.
$38,800 Level Is Important
According to the analyst, Bitcoin must rise above the $38,800 level in order to gain upward momentum. In the stated case, there are chances of a move above the $39,500 resistance.
Will Bitcoin Drop?
Jindal says that if Bitcoin fails to start a recovery wave above the $38,400 resistance area, it could start a fresh decline. An immediate support is near the $37,250 zone.
The next major support is seen near the $37,000 level. If there is a downside break below the $37,000 support zone, the price could gain bearish momentum towards $36,000. Any further losses could push the price towards $35,000.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now losing momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is falling towards the 50 level.
- Major Support Levels – 37,250 followed by $37,000
- Major Resistance Levels – $38,250, 38,400 and 39,500
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