Bitcoin price began a downward correction from well over $ 40,000 against the US dollar. BTC is now trading near a major support at $ 38,000 where the bulls are currently active.
- Bitcoin began a downward correction after failing to hold above $ 40,000.
- The price is currently just under $ 39,000 and the 100-hour simple moving average.
- The hourly chart for the BTC / USD pair (data feed from Kraken) broke below a major contracting triangle with support near USD 39,900.
- The pair is likely to start a fresh spike unless there is a close below the USD 38,000 support.
Bitcoin price repeats important support
Bitcoin hit near $ 41,350 before a downward correction set in. BTC consolidated over $ 40,000 for some time before the bulls failed to protect the mentioned support zone.
The price fell below the $ 40,000 and $ 39,500 support levels. There was also a break below a major contracting triangle with support near USD 39,900 on the hourly chart for the BTC / USD pair. The pair even broke the $ 38,500 support level and the 100-hour simple moving average.
However, the bulls are protecting the USD 38,000 support zone (the final breakout zone). The price is now consolidating above the $ 38,000 mark. It’s also just under $ 39,000 and the 100-hour simple moving average. The 23.6% Fib retracement level of the recent decline from the high of $ 41,350 to the low of $ 38,154 is also close to the 100-hour SMA.
Source: BTCUSD on TradingView.com
The first major resistance is near the $ 39,750 mark. It is near the 50% Fib retracement level of the recent decline from the high of $ 41,350 to the low of $ 38,154.
The main resistance is now forming near the $ 40,000 zone. A clear upward break above the $ 40,000 zone should set the pace for a new rally in the near future.
More losses at BTC?
If Bitcoin fails to break through the $ 39,750 and $ 40,000 resistance, it could prolong its decline. Initial downside support is near $ 38,150.
The first major support is near the $ 38,000 mark. A downside break below the recent lows and the $ 38,000 level could open the doors for a larger decline towards $ 36,500.
Hourly MACD – The MACD is slowly moving into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is rising towards 50.
Major Support Levels – $ 38,150, followed by $ 38,000.
Main Resistance Levels – $ 39,500, $ 39,750, and $ 40,000.