Last Updated on 3 weeks by cryptoevent
Once again, Bitcoin has encountered difficulty surpassing the critical $38,000 resistance, signaling a possible formation of a double-top pattern. The current trend suggests a downward movement towards the $34,500 support level.
- Bitcoin initiated a fresh decline from the $38,000 resistance zone.
- The price is currently trading below $36,750 and the 100-hourly Simple Moving Average.
- An optimistic scenario is indicated by a connecting bullish trend line with support around $36,250 on the hourly chart of the BTC/USD pair, according to data from Kraken.
- Further decline is anticipated if the $35,950 support level is breached.
Bitcoin Price Indicates Formation of Double Top Bitcoin made a renewed attempt to breach the $38,000 resistance, but this effort proved unsuccessful, resulting in a downward trajectory. The current market situation strongly suggests the formation of a double-top pattern around the $38,000 zone. A sharp decline below the $37,200 and $37,000 levels occurred, with the price briefly dipping below $36,500 and the 100-hourly Simple Moving Average. Bulls intervened near the $35,500 level, leading to a low at $35,517, and the price is currently in a corrective phase.
The price managed to climb above the 23.6% Fibonacci retracement level of the downward move from the $37,950 swing high to the $35,517 low. However, Bitcoin is still trading below $36,750 and the 100-hourly Simple Moving Average, with a connecting bullish trend line offering support around $36,250 on the BTC/USD pair’s hourly chart. Immediate resistance is noted around the $36,700 level, followed by key resistance near $37,000 or the 61.8% Fibonacci retracement level. A breakthrough above $37,000 could trigger a substantial uptrend, with the first major resistance at $37,500. Further gains may propel BTC towards the $38,000 level, and additional positive momentum might push it to $39,200.
Potential for Further Bitcoin Losses However, if Bitcoin fails to overcome the resistance at $37,000, there is a possibility of further downward movement, completing the double-top pattern. Immediate support lies near the $36,200 level, followed by a significant support level at $36,000. A breach below $36,000 increases the risk of additional losses, potentially pushing the price towards the $35,500 support in the short term, with the next significant target at $34,500.
Technical Indicators:
- Hourly MACD: The MACD is showing a loss of momentum in the bullish zone.
- Hourly RSI (Relative Strength Index): The RSI for BTC/USD has fallen below the 50 level.
- Major Support Levels: $36,200, followed by $35,500.
- Major Resistance Levels: $36,700, $37,000, and $38,000.