Bitcoin price is struggling below $39,000 against the US Dollar. BTC might extend losses if it stays below the $38,400 and $39,000 resistance levels.
Bitcoin Price Analysis
Bitcoin price failed to clear the $40,000 resistance zone. As a result, BTC started a fresh decline and traded below the key $39,000 support zone.
There was a clear move below the $38,500 level and the 55 simple moving average (4-hours). The price even spiked below the $37,500 level. A low is formed near $37,401 and the price is now consolidating losses. There was a move above the $37,800 resistance zone.
The price is now testing the 23.6% Fib retracement level of the downward move from the $40,400 swing high to $37,401 low. An immediate resistance on the upside is near the $38,350 level.
There is also a key bearish trend line forming with resistance near $39,380 on the 4-hours chart of the BTC/USD pair. The next major resistance on the upside is near the $38,900 level. It is near the 50% Fib retracement level of the downward move from the $40,400 swing high to $37,401 low.
To start another increase, the price must settle above the $39,000 level in the near term. If there is no upside break, the price might start a fresh decline below $37,500. The next key support is near the $36,000 level. Any more losses might call for a test of the key $35,500 support zone, where the bulls might take a stand in the near term.
Looking at the chart, bitcoin price is clearly trading below $38,500 and the 55 simple moving average (4-hours). Overall, the price could start a steady increase if there is a move above the $39,000 level.
4 hours MACD – The MACD is now gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.
Key Support Levels – $37,500 and $36,000.
Key Resistance Levels – $38,350, $39,000 and $40,000.
Source: Read Full Article