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.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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