Cryptocurrency News

Bitcoin Signs Fresh Drop, Why BTC’s Drop May Be Limited


Bitcoin price climbed above the $37,500 resistance level against the US Dollar. BTC failed to clear $38,500 and is now turning lower.

  • Bitcoin traded above $38,000 but failed to continue above $38,500.
  • The price is currently trading well above $35,000 and the 100 hourly simple moving average.
  • There was a break below a major bullish trend line with support near $36,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair can extend its decline, but the bulls are likely to remain active near $35,000.

bitcoin price correction profit

Bitcoin settles above $35,000 and stepped up. BTC even broke the $37,500 resistance, but the bulls failed to gain strength to break the $38,500 barrier.

A high was formed near $38,425 and the price is now correcting lower. It broke the $37,000 support level to start the current correction. There was a break below the 23.6% Fib retracement level of the upward wave from the $31,052 low to $38,423 high.

Besides, there was a break below a major bullish trend line with support near $36,500 on the hourly chart of the BTC/USD pair. However, the pair is still above $35,000 and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

On the upside, an initial resistance is near the $37,000 level. The first major resistance is near the $37,500 level, above which the price could retest the $38,500 resistance area in the near term. main resistance Still near $40,000 level.

Supported Dips in BTC?

If Bitcoin fails to clear the $37,500 resistance, it could extend the decline. An initial support on the downside is near the $36,000 level.

The first major support is near the $35,500 level. Major support is now forming near the $35,000 level and the 100 hourly SMA. It is near the 50% Fib retracement level of the $38,423 swing low from $31,052 low. A downside break below the $35,000 support area might push the price back into a bearish zone.

Technical Indicators:

Hourly MACD – The MACD is now losing momentum in the bullish zone.

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

Key Support Level – $36,000, followed by $35,000.

Major resistance levels – $37,500, $38,500 and $40,000.



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