Bitcoin price surged above the $0,000 level before started a downside correction against the US Dollar. BTC is now testing a major support at $38,600, below which it could decline to $36,000.
- Bitcoin climbed above the $38,000 resistance, but it struggled to stay above $40,000.
- The price is trading near the $38,600 support, but it is well above the 100 simple moving average (4-hours).
- There is a key bullish trend line forming with support near $38,650 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair could either decline heavily towards $36,000 or it might climb back above $40,000.
Bitcoin Price Remains At Risk
This past week, bitcoin price saw a decent upward move above the $36,000 resistance against the US Dollar. The BTC/USD pair even climbed above the $38,000 resistance to move further into a positive zone.
The price broke the $40,000 resistance and it settled above the 100 simple moving average (4-hours). A high was formed near $41,050 before the price started a downside correction. There was a break below the $39,500 and $39,000 levels.
The price even traded below the 23.6% Fib retracement level of the upward move from the $36,217 swing low to $41,050 high. Bitcoin is now trading near the $38,600 support level.
Source: BTCUSD on TradingView.com
There is also a key bullish trend line forming with support near $38,650 on the 4-hours chart of the BTC/USD pair. The 50% Fib retracement level of the upward move from the $36,217 swing low to $41,050 high is also near the trend line to provide support.
A downside break below the trend line support could open the doors for a larger decline below $37,000. The next major support is near the $36,000 level.
Fresh Increase in BTC?
If bitcoin stays above the trend line support, there are chances of a fresh increase above $39,500. An initial resistance on the upside is near the $40,000 level.
A proper break and close above the $40,000 resistance will most likely set the pace for a sustained upward move in the coming sessions. The next major resistance on the upside is near the $41,500 level.
Technical indicators
4 hours MACD – The MACD for BTC/USD is slowly gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 50 level.
Major Support Level – $38,600
Major Resistance Level – $40,000
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