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TA: Bitcoin Faces Rejection, Why BTC is Vulnerable Below $38K

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Bitcoin 18
24
Feb

Bitcoin failed to clear the $39,500 resistance zone against the US Dollar. BTC started a fresh decline and is showing bearish signs below $38,000.

  • Bitcoin failed to gain strength above the $39,000 level and stayed below $40,000.
  • The price is trading below $38,500 and the 100 hourly simple moving average.
  • There was a break below a key rising channel with support near $38,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair remains at a risk of more downsides below the $36,300 support zone.

Bitcoin Price Struggle Continues

Bitcoin price started an upside correction above the $38,000 resistance. BTC was able to clear the $38,500 resistance and the 100 hourly simple moving average.

However, the price struggled to gain strength above the $39,000 level. It even stayed well below the $40,000 resistance zone. A high was formed near $39,250 and the price started a fresh decline. There was a sharp decline below the $38,500 level and the 100 hourly simple moving average.

Besides, there was a break below a key rising channel with support near $38,250 on the hourly chart of the BTC/USD pair. Bitcoin price traded below $37,000 and a low is formed near $36,673.

It is now consolidating losses and facing resistance near the $37,280 level. The stated resistance is close to the 23.6% Fib retracement level of the recent decline from the $39,250 swing high to $36,673 low. The next key resistance is near the $38,000 level.

Source: BTCUSD on TradingView.com

The 50% Fib retracement level of the recent decline from the $39,250 swing high to $36,673 low is also near $38,000 along with the 100 hourly simple moving average. A clear move above the $38,000 resistance could send the price to $39,000. To gain bullish momentum, the price must settle above the $39,500 level.

More Losses in BTC?

If bitcoin fails to start a recovery wave above the $37,280 resistance zone, it could continue to move down. An immediate support on the downside is near the $36,650 zone.

The next major support is seen near the $36,300 level. If there is a downside break below the $36,300 support zone, the price might gain bearish momentum towards $35,000.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.

Major Support Levels – $36,300, followed by $35,000.

Major Resistance Levels – $38,000, $38,400 and $39,500.

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