Bitcoin is facing resistance near $38,200. According to technical analysis by NewsBTC’s Aayush Jindal, there is a risk of further declines unless there is a move above the $39,000 resistance.
Bitcoin Continues to Drop
Bitcoin attempted an upside break above the $38,800 and $39,000 resistance levels. However, it started a fresh decline from here after struggling to surpass the $39,000 resistance zone. A high was formed near $39,170 and the price started a fresh decline. There was a clear move below the $38,800 and $38,500 levels. The price even declined below the $38,000 level and there was a close below the 100 hourly simple moving average.
A bottom was 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 the $39,169 high to $37,507 low. Bitcoin is currently facing resistance near the $38,350 level and the 100 hourly simple moving average. There is also a key bearish trend line forming 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 decline from the $39,169 high to $37,507 low.
The next key resistance could be near the $38,800 area. A close above the $38,800 resistance might increase the chances of a clear move above the $39,000 resistance zone.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to break through the $38,350 resistance zone, it may continue to move lower. An immediate support is near the $37,700 level. The next major support is seen near the $37,550 level. A downside break below the $37,550 support and the recent low could trigger hard losses. The next major support is $36,500, below which the price could drop to $35,000.
What Do Technical Indicators Say?
- Hourly MACD – MACD is slowly losing momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
- Major Support Levels – 37,700 followed by $37,550
- Major Resistance Levels – $38,350, 38,800 and 39,000
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