TA: Bitcoin Consolidates Below $39k: What Could Trigger Another Decline

Bitcoin extended decline below the $38,000 level against the US Dollar. BTC is recovering, but it must clear $39,000 for upside continuation.

• Bitcoin remained in a bearish zone below $40,000 and $39,000.
• The price is now trading below $39,000 and the 100 hourly simple moving average.
• There was a break above a key bearish trend line with resistance near $38,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair must clear the $39,000 resistance to continue higher in the near term.

Bitcoin Price Eyes Recovery Wave

Bitcoin price gained bearish momentum after it broke the $39,000 support zone. BTC even traded below the $38,000 level and settled below the 100 hourly simple moving average.

There was a spike below the $37,500 support zone. A low was formed near $37,399 and the price is now correcting higher. There was a move above the $38,000 and $38,200 resistance levels. There was also a break above a key bearish trend line with resistance near $38,000 on the hourly chart of the BTC/USD pair.

Bitcoin price even climbed above the 23.6% Fib retracement level of the key decline from the $40,349 swing high to $37,399 low. It is now facing resistance near the $38,800 level and the 100 hourly simple moving average.

The 50% Fib retracement level of the key decline from the $40,349 swing high to $37,399 low is also near the $38,800 zone to act as a resistance. The next key resistance could be near the $39,000 zone. A close above the $39,000 level could open the doors for a decent increase.

Source: BTCUSD on TradingView.com

In the stated case, the price could even surpass the $39,250 resistance. The next major resistance may perhaps be near the $40,000 zone.

Fresh Decline in BTC?

If bitcoin fails to clear the $39,000 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $38,400 level.

The next major support is seen near the $38,000 level. A clear break below the $38,000 support zone could even push the price below $37,500. Any more losses might call for a test of the $36,400 support.

Technical indicators:

Hourly MACD – The MACD is slowly losing pace in the bullish zone.

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

Major Support Levels – $38,400, followed by $38,000.

Major Resistance Levels – $38,800, $39,000 and $39,200.

from NewsBTC https://ift.tt/ZrBGM2w