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Writer's pictureConnie Chan

Can Bitcoin Bulls Clear Major Hurdle?


Can Bitcoin Bulls Clear Major Hurdle?
Can Bitcoin Bulls Clear Major Hurdle?

Bitcoin price trimmed losses and climbed above $37,750. BTC gained pace but it is still struggling to clear the $38,500 resistance zone.

  • Bitcoin is again facing heavy resistance near the $38,500 zone.

  • The price is trading above $37,500 and the 100 hourly Simple moving average.

  • There was a break above a major bearish trend line with resistance near $37,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).

  • The pair is struggling to clear the $38,500 resistance and correcting gains.

Bitcoin Price Extends Decline

Bitcoin price recently tested the $36,720 support zone but managed to avoid a significant decline. It has since started a fresh upward movement and surpassed the $37,000 level. Additionally, there was a clear break above the $37,500 level.


Furthermore, the BTC/USD pair experienced a breakout above a major bearish trend line with resistance near $37,250 on the hourly chart. The pair then surged above the $37,750 resistance level. However, the bears once again became active near the $38,500 resistance.


The price reached a high point near $38,390 and is currently undergoing a correction. It retraced below the 23.6% Fibonacci retracement level of the recent wave, which ranged from the $36,720 swing low to the $38,390 high.


Bitcoin is currently trading above $37,500 and the 100 hourly Simple Moving Average. On the upside, the immediate resistance is around the $38,200 level, followed by a major resistance forming near $38,400. The main resistance is now at the $38,500 level. If the price manages to close above this resistance, it could potentially trigger a strong increase.


Source: BTCUSD on TradingView.com
Source: BTCUSD on TradingView.com

The next key resistance could be near $39,200, above which BTC could rise toward the $39,500 level. Any more gains might send BTC toward the $40,000 resistance.


Another Drop In BTC?

If Bitcoin fails to rise above the $38,400 resistance zone, it could start another decline. Immediate support on the downside is near the $37,600 level.


The next major support is $37,500 or the 50% Fib retracement level of the recent wave from the $36,720 swing low to the $38,390 high. If there is a move below $37,500, there is a risk of more downsides. In the stated case, the price could drop toward the $36,720 support in the near term.


Technical indicators:

Hourly MACD – The MACD is now 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 – $37,600, followed by $37,500.

Major Resistance Levels – $38,400, $38,500, and $39,200.


Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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