Bitcoin Price Encounters Vital Examination, Indicators Hint at Numerous Obstacles Hindering Revival

Bitcoin Price Tests $38,500 Support Zone

The price of Bitcoin has continued to decline and has now reached the $38,500 support zone. It is currently trading below $40,000 and the 100 hourly Simple Moving Average. On the hourly chart of the BTC/USD pair, there is a bearish trend line forming with resistance near $40,450.

Bitcoin Price Turns Red

Bitcoin’s price has remained in a bearish zone below the $40,000 support level. It has extended its decline and even traded below $49,200. The price has now tested the $38,500 support zone after forming a new weekly low near $38,518.

Although there is a slow recovery above the $39,000 level and it has cleared the 23.6% Fibonacci retracement level, Bitcoin is still trading below $40,000 and the 100 hourly Simple Moving Average.

Another Decline In BTC?

If Bitcoin fails to rise above the $40,450 resistance zone, it could potentially start another decline. Immediate support on the downside can be found near the $39,400 level. The next major support is at $39,000 and a close below that could lead to further bearish momentum.

Technical Indicators

The MACD on the hourly chart is currently losing pace in the bearish zone. However, the RSI for BTC/USD is now above the 50 level.

Major support levels are at $39,400 followed by $38,500. On the other hand, major resistance levels are at $40,350, $40,450, and $40,850.

Hot Take: Bitcoin Struggles to Recover

Bitcoin continues to face challenges as it struggles to recover from its recent decline. The price is currently trading below key resistance levels and the 100 hourly Simple Moving Average, indicating a bearish trend. While there has been a slight recovery above the $39,000 level, the overall outlook remains uncertain.

If Bitcoin fails to break above the $40,000 and $40,500 resistance levels, it may experience another decline. Traders should closely monitor the support levels at $39,400 and $38,500 for any further downward movement. Technical indicators suggest that the market is still bearish, with the MACD losing pace in the bearish zone.