After rebounding yesterday, Bitcoin now signals another decline. Why could the dips be limited in BTC?
Bitcoin price continued its upward move over the $37,500 resistance against the US Dollar. Bitcoin didn’t clear the $38,500 and now it is correcting lower.
Gains Corrected by Bitcoin Price
Bitcoin steadied very well above the $35,000 then extended its move upwards. The largest cryptocurrency even broke the $37,500 resistance. However, the bulls failed to gain their strength for a break of the $35,000 hurdle.
A high has formed close to $38,425 and now the price moves downward. It broke the $37,000 support level to begin the recent correction. There has been a break below the 23.6% Fib retracement level of the upward wave from the $31,052 swing low to $38,423 high.
Additionally, there has been a break below a key bullish trend line with a support near the $36,500 on the hourly chart of the BTC/USD pair. But the pair is still above the $35,000 and the 100 hourly simple moving average.
On a more positive side, an initial resistance is close to the $37,000 level. The first major resistance is around the $37,500 level, above which the price seems to revisit the $38,500 resistance zone in the near term. The key resistance is still around the $40,000 level.
Are there any dips supported in BTC?
If ever Bitcoin fails to clear the $37,500 resistance zone, it might extend its decline. It is an initial support on the downside that is close to the $36,000 level.
The first major support is close to the $35,500 level. The main support now forms near the $35,000 level and the 100 hourly SMA. It is also close to the 50% Fib retracement level of the upward wave from the $31,052 swing low to $38,423 high. A downside break lower than the $35,000 support zone might push the price back into the bearish zone.
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