Cryptocurrency News

Bitcoin is still in range, a strong move can be triggered here


The price of bitcoin is still struggling to clear $ 40,000 and $ 41,000 against the US dollar. If there is a clear break below $ 37,000 and $ 36,500, the BTC could fall drastically.

  • Bitcoin is still struggling to clear resistance levels of $ 40,000 and $ 40,500.
  • The price is currently trading near $ 38,000 and a 100-hour simple moving average.
  • The BTC / USD pair has a major contraction triangle on the hourly chart with support near $ 37,500 (data feed from Kraken).
  • If it falls below the $ 37,000 endorsement and 100-hour SMA, the pair could fall heavily.

Bitcoin price faces major hurdles

Bitcoin made another attempt to gain momentum over $ 40,000 resistance. However, BTC failed to continue higher and remained in the major range below $ 40,500.

The last swing high was made near $ 40,923 before the price went up in a range. It corrected from an upward 23.6% Fibonacci retracement level to a high of $ 40,923 from a low of $ 31,088. The price is now trading near $ 37,000 and 100-hour moving average.

A major contraction triangle is also formed, with support near $ 37,500 on the hourly chart of the BTC / USD pair. If the bitcoin triangle stays above the support trend line, it can start new growth above $ 39,000.

Source: BTCUSD on TradingView.com

On the upside, immediate resistance is near $ 39,200. The first major resistance is near the $ 40,000 level and the triangle upper trend line. A triangle above the resistance could open the door for a sharp rise above the resistance level of $ 40,500 and $ 40,600 in the near term.

More loss in BTC?

If bitcoin fails to clear the resistance level of $ 40,000, there is a risk of a downward break. On the downside, initial support is near $ 37,500.

The first major endorsement is near the pivot level of $ 36,000. This is close to a 50% Fibonacci retreatment from a low of $ 31,088 upward to a high of $ 40,923. If the price breaks below the support level of $ 36,000, the price may fall towards the $ 34,000 support area in the coming sessions.

Technical Indicators:

Hourly MACD – MACD is slowly gaining momentum in the region of recession.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now below the 50 level.

Major Support Level – $ 37,000, followed by $ 37,000.

Major resistance levels – $ 39,500, $ 40,000 and $ 40,500.



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