Bitcoin Bounces Off Above $38K – Why $39,500 is Crucial for Traders
Bitcoin continues to remain in a bearish zone against the US dollar, trading below $39,000. BTC will only be able to recover if it is able to break through the $40,000 resistance zone.
Bitcoin’s price fell below the pivot level of $40,000 and the 100 hourly simple moving average. BITCOIN even breached the $38,000 support level, trading as low as $37,159.
The bulls were able to keep the $37,000 support zone safe. It has recovered its losses and is now trading above $37,500. The price rose above the $38,000 resistance level. The BTC price is now approaching the 50% Fib retracement level of the recent drop from the $39,545 swing high to the $37,159 low.
On the plus side, the Bitcoin price may encounter resistance near the $38,800 level. It is close to the 61.8% Fib retracement level of the recent downturn from the swing high of $39,545 to the low of $37,159.
On the hourly timeframe of the BTC/USD pair, a key triangle pattern is forming with resistance near $39,000. The next significant resistance is near $39,200 and the 100 hourly simple moving average. A clear move above $39,200 could pave the way for a test of $40,000. A close above $40,000 could pave the way for further gains in the near term.
More Bitcoin Losses?
If bitcoin fails to break through the $39,200 resistance level, it may continue to fall. On the downside, there is immediate support near $38,000.
The next significant support is seen near $37,200. If the price falls below the $37,200 support level, it may begin to fall again. In the aforementioned scenario, there is indeed a risk of a dip towards the $35,500 level.
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