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HomeAltcoin NewsBitcoin Price Analysis: BTC Approaches Key Support Near $37K

Bitcoin Price Analysis: BTC Approaches Key Support Near $37K

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  • Bitcoin price failed to extend gains above $42,650 against the US Dollar.
  • The price is now trading below $40,000 and the 55 simple moving average (4-hours).
  • There was a break below a major bullish trend line with support near $40,500 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair is likely to bounce back as long as it is above the $37,000 support zone.

Bitcoin price is slowly moving lower below $40,000 against the US Dollar. BTC could start a fresh increase unless there is a close below the $37,000 support.

Bitcoin Price Analysis

Bitcoin price extended its increase above the $40,000 resistance level. BTC even broke the $42,000 resistance level and spiked above $42,500.

However, the bulls protected additional gains above $42,650. A high was formed near $42,694 before the price started a fresh decline. There was a break below the $41,000 and $40,000 levels. The price declined below the 50% Fib retracement level of the upward move from the $38,339 swing low to $42,694 high.

There was also a break below a major bullish trend line with support near $40,500 on the 4-hours chart of the BTC/USD pair. It is now trading below $40,000 and the 55 simple moving average (4-hours). Besides, it is trading just below the $38,339 swing low.

An initial support on the downside is near the $37,300 level. It is near the 1.236 Fib extension level of the upward move from the $38,339 swing low to $42,694 high.

The main support is now forming near $37,000, below which there is a risk of a larger decline. The next major support could be near $35,000. On the upside, the first major resistance is near the $39,400 level and the 55 simple moving average (4-hours).

The main resistance is now forming near the $40,000 level. A close above the $40,000 zone is needed for a fresh increase.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is clearly trading below $40,000 and the 55 simple moving average (4-hours). Overall, the price is likely to bounce back as long as it is above the $37,000 support zone in the near term.

Technical indicators

4 hours MACD – The MACD is now gaining momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI is now well below the 50 level.

Key Support Levels – $37,300 and $37,000.

Key Resistance Levels – $39,400, $40,000 and $42,000.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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