Bitcoin attempted an upside break above the $38,500 resistance, but failed to surpass $38,500 and started a fresh decline. According to technical analysis by NewsBTC’s Aayush Jindal:
Bitcoin Struggles
Bitcoin faced strong resistance near the $38,200 and $38,500 levels after starting a recovery wave above the $37,000 level. BTC failed to break the 50% Fib retracement level of the main decline from the $43,490 high to $32,950 high. A local top was formed near $38.490 and it started a fresh decline. There was a break below the $37.200 support zone. There was also a break below a key bullish trend line with support near $37.150 on the hourly chart of the BTC/USD pair.
Bitcoin is currently trading below $37,000 and the 100 hourly simple moving average. It is testing the 50% Fib retracement level of the upward move from the $32,940 high to $38,490 high. Initial resistance is near the $37,000 level. The first major resistance is near the $38,000 zone. The main resistance is still near the $38,500 area. An upside break above the $38,500 resistance could initiate an upside move. The next key resistance is near the $39.200 level.
Will Bitcoin Drop?
Jindal says that if Bitcoin fails to start a fresh increase above $38,000, it could start another decline. An immediate support, according to him, is near the $35,700 zone. The first major support is seen near the $35,000 region. This is 61% of the upward move from $32,940 to $38,490. Close to 8 Fib retracement level. A downside break below the $35,000 support zone could push the price towards the $33,200 support zone.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD is now gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
- Main Support Levels – 35.700 then $35,000
- Main Resistance Levels – $37,000, $38,000, and $38,500
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