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Bitcoin Price Analysis: BTC Eyes Recovery Above $38K

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  • Bitcoin price started a fresh decline from the $42,000 zone against the US Dollar.
  • The price is now trading below $40,000 and the 55 simple moving average (4-hours).
  • There is a connecting resistance trend line forming with barrier at $37,800 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair could start a strong upward move if there was a break above the $38,000 resistance.

Bitcoin price is trading below $40,000 against the US Dollar. BTC might continue to decline as long as it is below the $38,000 resistance level.

Bitcoin Price Analysis

Bitcoin price started a fresh decline from the $42,000 resistance. BTC traded below the $40,000 and $38,000 support levels to move again into a bearish zone.

There was also a move below the $35,000 level. The bears pushed the price to a new multi-week low at $32,933. Recently, the price started an upside correction above $35,000. There was a break above the 23.6% Fib retracement level of the downward move from the $43,511 swing high to $32,933 low.

It is now trading below $40,000 and the 55 simple moving average (4-hours). An immediate support on the downside is near the $37,800 level.

There is also a connecting resistance trend line forming with barrier at $37,800 on the 4-hours chart of the BTC/USD pair. The next major resistance on the upside is near the $38,222 level. It is near the 50% Fib retracement level of the downward move from the $43,511 swing high to $32,933 low.

To start a strong increase, the price must settle above the $38,250 level in the near term. If not, there might be a fresh decline below the $36,000 support zone.

The next key support is near the $35,500 level. If the price fails to stay above $35,500, it could extend losses in the near term. The next major support sits near $34,500, below which there is a risk of a move towards the $32,000 level.

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 could start a strong upward move if there was a break above the $38,250 resistance.

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 above the 50 level.

Key Support Levels – $35,500 and $32,000.

Key Resistance Levels – $37,800, $38,250 and $40,000.

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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