Bitcoin Faces Resistance Near $38,500
The price of Bitcoin is currently encountering strong resistance around the $38,500 mark. However, it is still trading above $37,400 and the 100 hourly Simple Moving Average (SMA). On the BTC/USD hourly chart from Kraken, there is a bullish trend line forming with support near $37,350.
Bitcoin Price Holds Support
Bitcoin’s price has remained well-supported above the $37,500 zone. It recently climbed above $38,000 and attempted to surpass the $38,400 resistance area. Nevertheless, the bulls struggled to gain momentum and the price reached a peak near $38,400. Currently, it is correcting lower and trading below the 23.6% Fibonacci retracement level of the upward move from the swing low of $36,721 to the high of $38,390.
The BTC/USD pair is still trading above $37,400 and the 100 hourly SMA. Additionally, there is a key bullish trend line forming with support near $37,350 on the hourly chart.
Possible Upside Movement
Looking ahead, if Bitcoin manages to overcome the immediate resistance at around $38,200, it could face a major hurdle at $38,400. The primary resistance level remains at $38,500. A successful close above this level might trigger a fresh rally.
The next significant resistance could be near $39,200. If Bitcoin continues to rise, it may even target the $39,500 level. Further gains could potentially push BTC towards the crucial $40,000 resistance.
Potential Downside Risk
If Bitcoin fails to break above the resistance zone at $38,400 and starts to decline, the initial support on the downside is around $37,550. This level coincides with the 50% Fibonacci retracement level. The next major support is near $37,350, where the trend line is located. A move below this support level could result in further downsides and a potential decline towards the $36,720 support.
Technical Indicators
The MACD indicator on the hourly chart shows that BTC is losing momentum in the bullish zone. The Relative Strength Index (RSI) for BTC/USD is currently hovering around the 50 level.
Hot Take:
Bitcoin Struggles to Break Resistance at $38,500
Bitcoin continues to face significant resistance near the $38,500 mark. Although it remains above key support levels and a bullish trend line at $37,350, there is a possibility of further losses if it fails to surpass the resistance zone. On the upside, a successful close above $38,500 could trigger a new rally towards $39,200 and potentially even $40,000. Traders should closely monitor Bitcoin’s price action for any breakout or breakdown from its current range.
By
By
By
By