Bitcoin Shows Bearish Signs and Moves Lower
The price of Bitcoin is currently displaying bearish signals as it declines from the $37,750 resistance level. It is trading below both the $37,400 mark and the 100 hourly Simple Moving Average. On the BTC/USD pair’s hourly chart from Kraken, a significant bearish trend line is forming with resistance near $37,380.
Bitcoin Price Extends Decline
After a spike towards the $38,500 zone, Bitcoin underwent a downside correction. It fell below the $37,200 level and reached a low of around $36,720 before consolidating its losses. The price then experienced a slight increase above the 23.6% Fibonacci retracement level.
Currently, Bitcoin is trading below $37,400 and the 100 hourly Simple Moving Average. Immediate resistance can be found near the $37,400 level, along with the bearish trend line near $37,380 on the BTC/USD hourly chart.
The first major resistance lies at approximately $37,570 or the 100 hourly Simple Moving Average. This level aligns closely with the 50% Fibonacci retracement level. The main resistance is now at $38,000 and a close above this point could initiate a strong upward movement.
If Bitcoin fails to surpass the $37,570 resistance zone, there is a possibility that it will continue to decline. Immediate support can be found at around $36,720 with the next major support level at $36,500. A move below this level could lead to further downsides, potentially reaching the $35,650 support level. The subsequent key support or target would be $35,000.
Technical Indicators
The MACD on the hourly chart is currently in the bearish zone and gaining momentum. The Relative Strength Index (RSI) for BTC/USD has fallen below the 50 level.
Major Support Levels: $36,720, $36,000
Major Resistance Levels: $37,400, $37,570, $38,000
Hot Take: Bitcoin Struggles to Break Resistance Level
Bitcoin is facing resistance at the $37,570 level and struggling to make significant gains. If it fails to break this resistance and continues to decline, it may find support near the $36,720 level. However, if it manages to overcome this hurdle and close above the $38,000 mark, a strong upward movement could be initiated. Traders should closely monitor these key levels for potential trading opportunities.
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