Bitcoin Price Prediction: Why $38K Can Drive Reversal

Bitcoin fell below $40,000 against the US dollar, gaining bearish momentum. BTC may be able to rebound if it can get above the $40,000 pivot mark. Bitcoin remained in a bearish zone, with a drop below $40,000. Currently, the price is below $40,000 and below the 100 hourly simple moving average.

On the hourly chart of the BTC/USD pair, a steep bearish trend line is forming with resistance near $39,700. If the pair moves above $40,000, it could begin a short-term comeback.

Bitcoin Price Increases at a Bearish Rate

Bitcoin’s price has failed to get beyond $43,500. BTC began a new drop, trading below the $42,000 support level. The bears grabbed over and drove the price below $41,000. There was also a definite break below the $40,000 support level and a closing below the 100 hourly simple moving average. The price has dropped as low as $39,240 and is now consolidating losses.

On the upside, an immediate barrier is near the $39,700 mark. On the hourly chart of the BTC/USD pair, a steep bearish trend line is forming with resistance near $39,700.

Near the $40,000 mark, the first substantial barrier is building. The next level of resistance could be around $40,200. It is near the latest slide’s 23.6 percent Fib retracement level from the swing high of $43,415 to the low of $39,240. A clear move above $40,000 and $40,200 could signal a short-term rebound wave.

The price may move towards the $41,350 resistance zone in the scenario above. It is close to the 50% Fib retracement level of the recent drop from the $43,415 swing high to the $39,240 low.

More Bitcoin Losses?

If Bitcoin fails to break over the $40,000 resistance level, it may continue to fall. On the downside, there is immediate support near $39,250.

The next significant support level is predicted to be near $38,880. A break below the $38,880 support zone on the downside could boost selling pressure. The price could continue to fall towards the $37,500 mark in the next sessions in the scenario above.

Good luck!