Bitcoin Price Analysis: BTC Eyes Recovery Above $38K

• 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.

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.