Bitcoin is struggling to break the $38,800 level against the US Dollar. If BTC stays below the $39,000 pivot level, it could drop significantly. Bitcoin is struggling to break the $38,800 and $39,000 resistance levels.
The price is currently trading below $38,600 and the 100 hourly simple moving average. There is a major contraction triangle forming with a on the hourly chart of the BTC/USD pair Resistance near $38,880. The pair needs to break the $38,880 and $39,000 resistance levels to start a decent rise.
Bitcoin price is looking for the next break
Bitcoin price found support at $37,400 and started a recovery wave. BTC was able to reclaim the $38,000 level and gradually increased its value. A clear move above the 23.6 percent Fib retracement level of the key decline from the $40,350 high to the $37,400 low was observed. The price attempted to break the $38,800 resistance level and the 100 hourly simple moving average.
However, bitcoin price is struggling to scale above $39,000. It also failed to settle above the 50% Fib retracement level of the crucial drop from the $40,350 high to the $37,400 low.
Additionally, the hourly chart of the BTC/USD pair is forming a major contracting triangle with resistance near $38,880. It is currently facing resistance near $38,600 and the hourly simple moving average.
The next significant resistance level could be around $38,880. A close above $38,880 and $39,000 could spell a decent move up. The price could even break the $39,250 resistance in the mentioned scenario. The next big stumbling block is seen near the $40,000 mark.
Another drop in BTC?
If bitcoin fails to break the $38,880 resistance level, a fresh decline could begin. On the downside, there is immediate support near $38,400. The next major supports are the lower trendline of the triangle and the $38,200 level.
If the price falls below the triangle support, it can even drop below $38,000. The next significant support level is $37,400, below which the price could drop to $36,500. Much luck!
Source: Crypto News Deutsch