BTC / USD
38,822.51
1.27%
(+488.38)
ETH / USD
2,106.07
1.3%
(+27.03)
XRP / USD
0.61
1.22%
(+0.01)
LTC / USD
71.69
0.45%
(+0.32)
EOS / USD
0.69
2.02%
(+0.01)
BCH / USD
226.79
1.51%
(+3.37)
ADA / USD
0.39
2.15%
(+0.01)
XLM / USD
0.12
0.94%
(0)
NEO / USD
11.42
3.3%
(+0.37)
XEM / USD
0.04
0.93%
(0)
DASH / USD
31.16
2.95%
(+0.89)
USDT / USD
1.00
0.02%
(0)
BNB / USD
227.49
0.28%
(-0.64)
QTUM / USD
3.09
1.84%
(+0.06)
XVG / USD
0.00
1.66%
(0)
ONT / USD
0.23
1.6%
(0)
ZEC / USD
30.68
3.84%
(+1.13)
STEEM / USD
0.26
1.87%
(0)

What Could Trigger Another Decline

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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.

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