TA: Bitcoin Lacks Momentum Above $38.5K, But Dips Likely To Be Limited

Aayush Jindal

1 year ago

2 mins read

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Bitcoin extended increase above the $38,800 resistance zone against the US Dollar. BTC is now struggling near $39,200 and might correct a few points.

Bitcoin started a fresh increase and was able to clear the $38,500 resistance zone.
The price is now trading above $38,000 and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $37,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to rise if it stays above the $37,500 support zone in the near term.

Bitcoin Price Consolidates

Bitcoin price remained strong above the $37,500 pivot level. BTC extended increase and was able to clear the $38,500 resistance zone.

The price even spiked above the $39,000 level and settled above the 100 hourly simple moving average. A high is formed near the $39,290 level and the price is now consolidating gains. There was a minor decline below the $38,800 level.

Bitcoin traded below the 23.6% Fib retracement level of the recent increase from the $36,665 swing low to $39,290 high. However, it is trading above $38,000 and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

On the upside, an initial resistance is near the $38,800 level. The first major resistance is near the $39,200 zone. A clear move above the $39,200 zone might push the price towards the $40,000 resistance zone. Any more gains may perhaps open the doors for a larger increase in the coming sessions. The next major resistance above $40,000 might be near the $41,200 level.

Downsides Limited in BTC?

If bitcoin fails to start a fresh increase above $39,200, it could start a downside correction. An immediate support on the downside is near the $38,500 zone.

The first major support is seen near the $38,000 zone. It is near the 50% Fib retracement level of the recent increase from the $36,665 swing low to $39,290 high. The main support is near the trend line and $37,500. A downside break below the $37,500 support zone may perhaps call for a sharp decline in the near term.

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 still above the 50 level.

Major Support Levels – $38,000, followed by $37,500.

Major Resistance Levels – $38,800, $39,200 and $40,000.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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