Bitcoin remained below $39,000. According to technical analysis by NewsBTC’s Aayush Jindal, BTC can only rally if it manages to clear the $40,000 resistance zone.
Bitcoin is in the Red Zone
Bitcoin broke the $38,000 support level and dropped as low as $37,159. However, the bulls managed to protect the $37,000 support zone and there was a move above the $38,000 resistance zone. The price is currently testing the 50% Fib retracement level of the low from the $39,545 low to $37,159 low.
BTC could face resistance near the $38,800 level. This is close to the 61.8% Fib retracement level of the recent drop from the $39,545 high to $37,159 high. There is also a key triangle forming with resistance near $39,000 on the hourly chart of the BTC/USD pair. The next major resistance is near the $39,200 level and the 100 hourly simple moving average. A clear move above the $39,200 level could open the doors for a test of $40,000. A close above $40,000 could set the pace for more upsides in the near term.
Will Bitcoin Drop?
Jindal says that if Bitcoin fails to break through the $39,200 resistance zone, it may continue to move lower. An immediate support on the downside is near the $38,000 zone. The next major support is seen near the $37,200 level. If there is a downside break below the $37,200 support, the price could start another decline. In the stated case, there is a risk of a move towards the $35,500 level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now losing momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now close to the 50 level.
- Major Support Levels – $38,000 then $37,200
- Major Resistance Levels – $38,800, 39,200 and $40,000
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