Bitcoin Price Consolidates – Why 100 SMA Could Spark Fresh Increase

Bitcoin price failed again to clear the $38,500 resistance zone. BTC is consolidating above the 100 hourly SMA and might attempt another increase.

• Bitcoin is still facing heavy resistance near the $38,500 zone.
• The price is trading above $37,400 and the 100 hourly Simple moving average.
• There is a key bullish trend line forming with support near $37,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could make another attempt to clear the $38,500 resistance unless it breaks below $37,350.

Bitcoin Price Holds Support

Bitcoin price remained well-bid above the $37,500 support zone. BTC climbed higher above the $38,000 level and made another attempt to clear the $38,400 resistance zone.

However, the bulls failed to gain strength and the price peaked near $38,400. It is again correcting gains and trading below the 23.6% Fib retracement level of the upward move from the $36,721 swing low to the $38,390 high.

Bitcoin is now trading above $37,400 and the 100 hourly Simple moving average. There is also a key bullish trend line forming with support near $37,350 on the hourly chart of the BTC/USD pair.

On the upside, immediate resistance is near the $38,200 level. The first major resistance is forming near $38,400. The main resistance is still near the $38,500 level. A close above the $38,500 resistance might start a fresh rally.

Source: BTCUSD on TradingView.com

The next key resistance could be near $39,200, above which BTC could climb toward the $39,500 level. Any more gains might send BTC toward the $40,000 resistance.

More Losses In BTC?

If Bitcoin fails to rise above the $38,400 resistance zone, it could start another decline. Immediate support on the downside is near the $37,550 level or the 50% Fib retracement level of the upward move from the $36,721 swing low to the $38,390 high.

The next major support is near $37,350 and the trend line. If there is a move below $37,350, there is a risk of more downsides. In the stated case, the price could decline toward the $36,720 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level.

Major Support Levels – $37,550, followed by $37,350.

Major Resistance Levels – $38,400, $38,500, and $39,200.

Source