Bitcoin price is still struggling to clear $ 40,000 and $ 41,000 against the US dollar. BTC could drop sharply if there is a significant break below $ 37,000 and $ 36,500.
- Bitcoin is still struggling to break the $ 40,000 and $ 40,500 resistance levels.
- The price is currently trading near $ 38,000 and the 100-hour simple moving average.
- A major contraction triangle is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with support near USD 37,500.
- The pair could fall sharply if below the USD 37,000 support and the 100-hour SMA.
Bitcoin price faces important hurdles
Bitcoin made another attempt to gain positive momentum above the USD 40,000 resistance. However, BTC failed to rise any further and remained in an important area below $ 40,500.
The latest swing high was formed near $ 40,923 before the price moved in a range. It corrected below the 23.6% Fib retracement level of the move up from the low of $ 31,088 to the high of $ 40,923. The price is now trading near $ 38,000 and the 100-hour simple moving average.
A major contraction triangle is also forming on the hourly chart of the BTC / USD pair with support near USD 37,500. If Bitcoin stays above the triangle support trendline, it could see another spike above $ 39,000.
Source: BTCUSD on TradingView.com
On the upside, there is immediate resistance near the $ 39,200 level. The first major resistance is near the $ 40,000 level and the upper trendline of the triangle. A close above the triangular resistance could open the doors for a sharp rise above the $ 40,500 and $ 40,600 resistance levels in the short term.
More losses at BTC?
If Bitcoin fails to offset the USD 40,000 resistance, it risks breaking down. Initial support on the downside is near the $ 37,500 level.
The first major support is near the $ 36,000 pivot level. It is near the 50% Fib retracement level of the move up from the $ 31,088 low to the $ 40,923 high. If there is a downside pause below the USD 36,000 support, the price could fall towards the USD 34,000 support zone in the coming sessions.
Hourly MACD – The MACD is slowly picking up pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now below the 50 level.
Major Support Levels – $ 37,000, followed by $ 36,000.
Main Resistance Levels – $ 39,500, $ 40,000, and $ 40,500.