Bitcoin price is struggling to clear the USD 38,000 and USD 40,000 resistance levels against the US dollar. BTC is currently consolidating more than USD 36,000 and remains at risk of a downside breakout.
- Bitcoin is trading in a short term bearish zone below the USD 38,000 and USD 40,000 resistance levels.
- The price has a key support zone near USD 35,600 and the simple 100 (4 hours) moving average.
- A large contracting triangle is forming with support near USD 35,550 on the BTC / USD pair’s 4-hour chart (Kraken data feed).
- The pair could begin a sharp decline if it clears the USD 35,500 and USD 35,000 support levels in the near term.
Bitcoin price-correcting gains
For the past week, bitcoin price climbed sharply higher than the USD 38,000 resistance against the US dollar. In fact, the BTC / USD pair peaked above $ 40,000 resistance, but it did not go further.
A high formed near USD 40,036 and the price was well above the 100 simple moving average (4 hours). Recently, there was a fresh decline and the price broke the USD 38,000 support. It even traded below the USD 36,000 level, reaching as low as USD 34,319.
The price is currently consolidate above the $ 35,000 level and the 100 simple moving average (4 hours). It was already rejected once at the 61.8% Fib retracement level of the recent drop from the $ 40,036 swing high to the $ 34,319 low.
Source: BTCUSD on TradingView.com
A large contracting triangle is also forming with support near USD 35,550 on the 4-hour chart of the BTC / USD pair. The triangle support is near the $ 35,000 failure zone and the simple 100 (4 hours) moving average.
If there is a downside break below the USD 35,500 and USD 35,000 support levels, bitcoin price may accelerate lower. The next big support on the downside is near USD 34,000. Even more losses could open the doors for a push towards the USD 32,000 and USD 30,000 support levels in the near term.
Upside down in BTC?
If bitcoin stays above the triangle support, USD 35,000, and the 100 simple moving average (4 hours), it could start another rise.
The main resistance on the upside is near the USD 38,600 zone and the upper triangle trendline. It is nearly 76.4% Fib retracement level from the recent drop in the swing high from $ 40,036 to $ 34,319 low. A close above the USD 38,600 level could open the doors for a surge above USD 40,000.
4 Hour MACD – The MACD for BTC / USD is losing momentum in the bullish zone.
4 Hour RSI (Relative Strength Index) – The RSI for BTC / USD is now below the 50 level.
Major Support Level – USD 35,500
Major Resistance Level – $ 38,600