TA: Bitcoin Fails Near Key Zone, Can Bulls Save The Day

Bitcoin attempted a key upside break above the $38,500 resistance against the US Dollar. BTC failed to clear $38,500 and started a fresh decline.

• Bitcoin struggled to gain pace above the $38,200 and $38,500 resistance levels.
• The price is now trading below $37,000 and the 100 hourly simple moving average.
• There was a break below a key bullish trend line with support near $37,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a fresh increase if the bulls are able to protect the $35,500 support zone.

Bitcoin price started a recovery wave above the $36,000 and $37,000 levels. BTC was even able to clear the $37,500 level and the 100 hourly simple moving average.

However, the bulls faced a strong resistance near the $38,200 and $38,500 levels. It failed to surpass the 50% Fib retracement level of the main drop from the $43,490 swing high to $32,950 low. A high was formed near $38,490 and the price started a fresh decline.

There was a break below the $37,200 support zone. Besides, there was a break below a key bullish trend line with support near $37,150 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading below $37,000 and the 100 hourly simple moving average. It is testing the 50% Fib retracement level of the upward move from the $32,940 swing low to $38,490 high. On the upside, an initial resistance is near the $37,000 level.

The first major resistance is near the $38,000 zone. The main resistance is still near the $38,500 zone. An upside break above the $38,500 resistance could start a steady upward move. The next key resistance is near the $39,200 level.

If bitcoin fails to start a fresh increase above $38,000, it could start another decline. An immediate support on the downside is near the $35,700 zone.

The first major support is seen near the $35,000 zone. It is near the 61.8% Fib retracement level of the upward move from the $32,940 swing low to $38,490 high. A downside break below the $35,000 support zone may perhaps push the price towards the $33,200 support zone.

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 now below the 50 level.

Major Support Levels – $35,700, followed by $35,000.

Major Resistance Levels – $37,000, $38,000 and $38,500.