Bitcoin price again failed to clear the $38,000 resistance zone. BTC is probably making a double top and may drop to the $34,500 support.
- Bitcoin started a new decline from the $38,000 resistance zone.
- The price is trading below $36,750 and the 100-hour simple moving average.
- There is a connecting bullish trend line forming with support near $36,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could decline further if there is a break below the $35,950 support.
Bitcoin price forms double top scenario
Bitcoin price made another attempt to clear the $38,000 resistance. However, BTC failed to clear the $38,000 resistance and started a fresh decline. It looks like the price is forming a double-top pattern near the $38,000 area.
There was a sharp decline below the $37,200 and $37,000 levels. The price even dropped below the $36,500 level and the 100-hour simple moving average. Finally, the bulls appeared near the $35,500 level. A low was formed near $35,517 and the price is now recovering from losses.
The price climbed above the 23.6% Fibonacci retracement level of the decline from the $37,950 high to $35,517 low. Bitcoin is now trading below $36,750 and the 100-hour simple moving average. There is also a connecting bullish trend line forming with support near $36,250 on the hourly charts of the BTC/USD pair.
On the positive side, immediate resistance lies near the $36,700 level. The next major resistance could be near $37,000 or the 61.8% Fibonacci retracement level of the decline from high $37,950 to low $35,517.
Source: BTCUSD on tradingview.com
A close above the $37,000 resistance could trigger a strong rise. The first major resistance is near $37,500, above which the price may see further gains. In the mentioned case, it may test the $38,000 level. Any further gains could take BTC to the $39,200 level.
More losses in BTC?
If Bitcoin fails to rise above the $37,000 resistance zone, it may continue to move lower to complete a double-top pattern. On the downside, immediate support is near the $36,200 level.
The next major support is $36,000. If there is a move below $36,000, there is a risk of more downside. In the mentioned case, the price may drop to the $35,500 support in the near term. The next major support or target could be $34,500.
Hourly MACD – MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $36,200, followed by $35,500.
Key resistance levels – $36,700, $37,000, and $38,000.