Bitcoin Faces Resistance Near $38,500
The price of Bitcoin is once again encountering strong resistance around the $38,500 zone. However, it is currently trading above $37,500 and the 100 hourly Simple Moving Average.
Break Above Bearish Trend Line
There was a significant breakthrough as Bitcoin broke above a major bearish trend line with resistance near $37,250 on its hourly chart. This indicates a positive move for the BTC/USD pair.
Struggling to Clear Resistance
Despite the recent gains, Bitcoin is struggling to clear the $38,500 resistance level and is undergoing a correction. It reached a high of around $38,390 before the correction began.
Bitcoin Price Rebounds
After revisiting the support zone at $36,720, Bitcoin managed to avoid a collapse and started a fresh increase. It surged above the $37,000 level and broke through the $37,500 level as well.
The bears tried to push back near the $38,500 resistance level but were unable to overcome it. Bitcoin is currently trading above $37,500 and the 100 hourly Simple Moving Average.
The immediate resistance lies near $38,200 followed by a major resistance forming near $38,400. The main resistance remains at $38,500. A close above this level could initiate a strong upward movement for Bitcoin.
Potential for Another Drop
If Bitcoin fails to break above the $38,400 resistance zone, it could potentially experience another decline. The immediate support on the downside is near $37,600.
If there is further downward movement below $37,500, there is a risk of more losses. This could cause the price to drop towards the $36,720 support level in the near future.
Technical indicators show that the MACD is losing pace in the bullish zone, while the RSI for BTC/USD is above the 50 level.
Hot Take: Bitcoin Struggles to Break Resistance Level
Bitcoin continues to face resistance near the $38,500 zone, resulting in a correction from its recent gains. However, it remains above $37,500 and the 100 hourly Simple Moving Average. The immediate resistance levels are at $38,200 and $38,400, with the main resistance at $38,500. A close above this level could trigger a significant upward movement for Bitcoin. On the other hand, if it fails to break above the resistance zone, there is a possibility of another drop with support levels at $37,600 and $37,500. Technical indicators suggest a potential reversal in momentum.
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