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.
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.