Bitcoin remains in danger of another drop to the $36K price level after the briefly touched $40,000 and went on a downside correction against the US dollar. BTC is now testing a major support level of $38,600 below which it could drop to $36,000 as we read more in today’s Bitcoin news.
Bitcoin climbed above the $38,000 resistance but had a hard time staying above $40,000 and the price was trading near the $38,600 support but it is well above the 100 simple moving average. There’s also a key bullish trend line forming with the support near $38,650 on the 4-hour chart of the pair that could either decline towards $36,000 or climb back above $40,000.
Over the past week, BTC saw a decent upward move above $36,000 resistance against the US dollar and the price climbed above the $38,000 resistance to move into a positive zone. The price broke the $40,000 resistance level and settled above the 100 simple moving average with a new high formed close to $41,060 before the price started correcting to the downside. There was a break below the $39,500 and the $39,000 levels.
The price traded below the 23.6% fib retracement level from the upward move at $36,217 swing low to the $41,050 high. BTC is now trading near the $38,600 support level and there was a new key bullish trend line forming with the support near $38,650 on the 4-hour charts of the pair. The 50% fib retracement level from the upward move at $36,217 swing low to the $41,050 high is near the trend line of support. While Bitcoin remains in danger of another drop, a break below the trend line support could open the doors for a larger decline below $37,000 with the next major support nearing the $36,000 level.
If Bitcoin stays above the trend line support, there are a few chances of a new increase at $39,500 with the initial resistance on the upside nearing the $40,000 level. A proper break and close above $40,000 will set the pace for a new upward move in the upcoming sessions with the next major resistance being set at $41,500. The 4-hour MACD for the pair is gaining momentum in the bearish zone and the 4-hour RSI is above the 50 level.
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