Bitcoin price is struggling to gain momentum above USD 37,500 and USD 37,800 against the US dollar. BTC could decline again if it breaks the USD 36,000 support zone.
- Bitcoin is facing a strong resistance near the USD 37,800 and USD 38,000 resistance levels.
- The price is now trading just above the USD 36,500 support and the 100 hourly easy moving average.
- A major contracting triangle is forming with support near USD 36,100 on the hourly chart of the BTC / USD pair (Kraken data feed).
- The pair must clear the USD 38,000 resistance to start fresh gains in the near term.
Bitcoin price faces an uphill task
After a decent close above USD 35,000, bitcoin price started a fresh upward move. BTC broke the USD 35,500 and USD 36,000 resistance levels to move into a short-term bullish zone.
The price even spiked above the USD 37,000 level and settled above the 100 simple hourly moving average. However, the price is still facing one strong resistance near the USD 37,800 and USD 38,000 resistance levels. A high is forming near USD 37,294 and the price is currently correcting lower.
There was a break below the $ 36,800 level. An initial support on the downside is near the USD 36,500 level and the 100 hourly simple moving average. The next support is near the 50% Fib retracement level of the recent rebound from the low of $ 35,407 to the high of $ 37,294.
Source: BTCUSD on TradingView.com
A major contracting triangle is also forming with support at USD 36,100 on the hourly chart of the BTC / USD pair. Triangle support is close to the 61.8% Fib retracement level of the recent rebound from the low of $ 35,407 to the high of $ 37,294.
If there is a break under the triangle support, bitcoin price could continue to decline. The next big support is near the USD 34,800 level, where the bulls are likely to take a position.
Chances of an upside break in BTC
If bitcoin remains above the USD 36,500 and USD 36,100 support levels, it could make another attempt to clear the USD 37,500 and USD 37,800 resistance levels.
The main resistance is still near the USD 38,000 zone. A close above the USD 38,000 zone is a must for the price to start a steep rise in the coming sessions.
Hourly MACD – The MACD is slowly losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now well above the 50 level.
Key Support Levels – USD 36,500, followed by USD 36,100.
Major Resistance Levels – USD 37,250, USD 37,800 and USD 38,000.