Bitcoin Price Lacks Momentum Above $37K, But Dips Likely To Be Limited

Bitcoin price consolidates its gains below the $37,000 zone. BTC could gain bullish momentum if the close is above the $36,800 and $37,000 levels.

• Bitcoin maintains gains above the $36,000 support zone.
• The price is trading below $37,000 and the 100 hourly simple moving average.
• A key downtrend line is forming with resistance near $36,600 on the hourly chart of the BTC/USD pair (Kraken data feed).
• The pair could make another attempt to strengthen above $37,000.

Bitcoin Price Holds Key Support

Bitcoin price made another attempt to clear the $37,500 Resistance. However, BTC failed to continue its rise towards the $38,000 resistance. A high was formed near $37,423 and the price began a downward correction.

There was a move below the $37,000 pivot level. The price fell below the $36,500 level but remained above $36,000. A low was formed near $36,183 and the price is now moving higher. There was a move above the $36,450 level. The price is trading above the 23.6% Fib retracement level of the recent decline from the $37,423 high to $36,183 low.

Bitcoin is now trading below $37,000 and the 100-hour simple moving average. There is also a key downtrend line forming with resistance near $36,600 on the hourly chart of the BTC/USD pair.

On the upside, immediate resistance is near the $36,600 level. The next key resistance could be near $36,800 or the 50% Fibonacci retracement level of the recent decline from the $37,423 high to $36,183 low. The first major resistance is near $37,000, above which the price could accelerate further.

Source: BTCUSD on TradingView.com

In the indicated case, it could test the $37,500 level. Any further gains could propel BTC towards the $38,000 level, above which the price could gain bullish momentum and rally towards $40,000.

Another drop in BTC?

If Bitcoin fails to rise above the $36,800 resistance zone, it could continue to decline. Immediate downside support is near the $36,180 level.

The next major support is near $36,000. If there is a move below $36,000, there is further downside risk. In the presented case, the price could fall towards the key support of $35,500 in the near term.

Technical indicators:

Hourly MACD – The MACD is now accelerating into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major support levels – $36,180, followed by $36,000.

Major resistance levels – $36,600, $36,800 and $37,000.