Bitcoin price is struggling to clear the $38,000 and $40,000 resistance levels against the US Dollar. BTC is currently consolidating above $36,000 and it remains at a risk of a downside break.
- Bitcoin is trading in a short-term bearish zone below the $38,000 and $40,000 resistance levels.
- The price is holding a key support zone near $35,600 and the 100 simple moving average (4-hours).
- There is a major contracting triangle forming with support near $35,550 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a strong decline if it clears the $35,500 and $35,000 support levels in the near term.
Bitcoin Price Correcting Gains
This past week, bitcoin price climbed higher sharply above the $38,000 resistance against the US Dollar. The BTC/USD pair even spiked above the $40,000 resistance, but it failed to continue higher.
A high was formed near $40,036 and the price settled well above the 100 simple moving average (4-hours). Recently, there was a fresh decline and the price broke the $38,000 support. It even traded below the $36,000 level and formed a low at $34,319.The price is currently consolidating above the $35,000 level and the 100 simple moving average (4-hours). It was already rejected once near the 61.8% Fib retracement level of the recent decline from the $40,036 swing high to $34,319 low.
Source:There is also a major contracting triangle forming with support near $35,550 on the 4-hours chart of the BTC/USD pair. The triangle support is near the $35,000 breakdown zone and the 100 simple moving average (4-hours).
