Bitcoin Price Avoids Collapse But Can Bulls Clear This Major Hurdle?

Bitcoin Price Avoids Collapse But Can Bulls Clear This Major Hurdle?

Bitcoin experienced a brief dip in its price, falling below $37,750, but subsequently showed signs of recovery. However, it’s currently facing a formidable obstacle in the form of the $38,500 resistance zone.

Key Points:

  • Resistance Challenge: Bitcoin is encountering strong resistance near the $38,500 mark, making it challenging for the cryptocurrency to break through this level.
  • Current Position: At present, Bitcoin is trading above $37,500 and is above the 100-hourly Simple Moving Average (SMA).
  • Bearish Trend Line Break: There was a notable breakthrough as Bitcoin overcame a significant bearish trend line with resistance around $37,250, according to data from Kraken.
  • Price Movements: Bitcoin underwent a period of decline, revisiting the $36,720 support zone. Fortunately, it avoided a major collapse and initiated a fresh uptrend, surpassing the $37,000 level.
  • Recent High: Bitcoin reached a high of approximately $38,390 during this upward movement but is currently undergoing a correction. It retraced below the 23.6% Fibonacci retracement level of the recent swing from the $36,720 low to the $38,390 high.
  • Resistance Levels: The immediate resistance is situated near $38,200, followed by a more substantial obstacle at $38,400. The primary resistance, however, is now positioned at the $38,500 level. A successful breach of this resistance could trigger a robust price surge.
  • Potential Upside: If Bitcoin manages to break above the $38,500 resistance, the next significant resistance level to watch for is around $39,200, and further gains could propel it toward $39,500. Beyond that, the $40,000 level may come into play.
  • Downside Risk: Conversely, if Bitcoin fails to surmount the $38,400 resistance, it may experience another decline. Initial support on the downside can be found near $37,600, followed by a critical support level at $37,500, which represents the 50% Fibonacci retracement level of the recent upward move. A break below $37,500 could lead to more downside potential, potentially revisiting the $36,720 support.

Technical Indicators:

Frequently Asked Questions (FAQs):

What is Bitcoin’s current price and trend?

Bitcoin is currently trading above $37,500 and has shown signs of recovery, but it is facing significant resistance near the $38,500 level.

What caused the recent price dip in Bitcoin?

Bitcoin briefly dipped and revisited the $36,720 support zone but managed to avoid a major collapse, prompting a fresh upward movement.

What are the key resistance levels for Bitcoin’s price?

The immediate resistance levels are $38,200 and $38,400, with the primary obstacle at $38,500. A successful breach of this resistance could lead to a significant price surge.

Where could Bitcoin’s price potentially go if it breaks through resistance?

If Bitcoin surpasses the $38,500 resistance, it may target key levels at $39,200 and $39,500, potentially moving further toward the $40,000 mark.

What are the support levels to watch if Bitcoin faces a downward trend?

If Bitcoin fails to overcome resistance, it could find support at $37,600, followed by a critical level at $37,500, and a more substantial support level at $36,720.

You Might Also Like

About Victor Dsouza

Victor Dsouza is Crypto Journalist. He is keen to write about crypto tokens, crypto presale, you can follow him on twitter and LinkedIn.

View all posts by Victor Dsouza →

Leave a Reply

Your email address will not be published. Required fields are marked *