Bitcoin price made another attempt to break through the $38,000 resistance. However, BTC failed to overcome the $38,000 resistance and began another decline. Price appears to be forming a double top pattern near the $38,000 zone. There has been a sharp move below the $37,200 and $37,000 levels. The price even jumped below the $36,500 level and the 100-hour simple moving average. Finally, bulls emerged near the $35,500 level. A low of around $35,517 was formed and the price is now correcting losses.
The price moved above the 23.6% Fibonacci retracement level of the downward move from the swing high of $37,950 to the low of $35,517. Bitcoin is currently trading below $36,750 and the 100-hour simple moving average. The hourly chart of the BTC/USD pair is also forming a bullish trend connecting line with support near $36,250. On the downside, immediate resistance is near the $36,700 level. The next key resistance could be near $37,000, or the 61.8% Fibonacci retracement of the downward move from the $37,950 swing high to $35,517 low.
A close above the $37,000 resistance could start a strong rally. The first major resistance is around $37,500, above which the price could accelerate further. In the stated case, this could test the $38,000 level. Further growth could take BTC to the $39,200 level. If Bitcoin fails to rise above the $37,000 resistance zone, it could continue moving lower to complete a double top pattern. The immediate support on the downside is near the $36,200 level. The next major support is $36,000. If there is a move below $36,000, there is a risk of an even deeper decline. In the said case, the price may fall towards the support of $35,500 in the near term. The next key support or target could be $34,500.
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 currently below 50. Major support levels are at $36,200, followed by $35,500. Major resistance levels are $36,700, $37,000 and $38,000.
