Bitcoin is struggling to break through the $40,000 resistance level against the US Dollar. BTC needs to close above $40K to start a steady upward trend.
Bitcoin Price Faces Key Resistance
Bitcoin price remained in a positive zone above the $38,000 pivot level. BTC even broke the $39,500 resistance level. The bulls made a couple of attempts to clear the $40,000 resistance zone, but they were not successful.
There was a recent swing high near $39,888 before a downside correction occurred. A move was seen below the $39,000 and $38,800 support levels. The hourly chart of the BTC/USD pair also showed a break beneath a short-term contracting triangle with support near $38,800.
At the moment, the pair is trading below $39,000 and the 100 hourly simple moving average. The price has formed a low near $37,028 and is consolidating losses. On an upwards trend, a strong resistance level is near the $38,200 level and the 100 hourly SMA. $38,500 is the next significant resistance level. Currently, it’s near the 50% Fib retracement level of the decline from the swing high of $39,888 to the low of $37,028.
The main resistance now is around $38,800. This level is near the 61.8% Fib retracement of the move from the $39,888 swing high to the $37,028 low. Having a clear move above the $38,800 resistance could lead to further gains. A move above $40,000 would even be possible in the stated situation. In the event that bitcoin fails to clear the $38,800 resistance zone, it may begin a downside correction. An immediate support zone on the downside can be found near the $37,200 mark.
The next major support would then be near the $36,400 level. Should there be a breach in the $36,400 support level, it could trigger a bearish momentum towards $35,000 or below.