Bitcoin experienced a corrective pullback following a surge towards the $38,500 range. The cryptocurrency took a bearish trajectory, settling beneath the $37,200 mark, as highlighted in yesterday’s analysis.
A decline occurred below the $37,000 threshold, resulting in a low formation of around $36,720. Presently, the price is consolidating its losses, making a slight recovery above the 23.6% Fibonacci retracement level from the recent drop, spanning from the $38,432 peak to the $36,720 bottom.
As of now, Bitcoin is trading below $37,400 and the 100-hourly Simple Moving Average. On the positive side, an immediate hurdle is evident near the $37,400 level, coupled with the formation of a crucial bearish trend line featuring resistance around $37,380, according to the BTC/USD hourly chart.
The initial significant resistance is shaping up around $37,570, corresponding to the 100-hourly Simple Moving Average, and is in proximity to the 50% Fibonacci retracement level of the recent decline from the $38,432 high to the $36,720 low. The primary hurdle currently lies at the $38,000 mark, and a successful breach of this resistance could initiate a robust upward movement.
Looking ahead, the subsequent key resistance might manifest around $38,500. Surpassing this level could propel Bitcoin toward the $39,200 zone, and in a bullish scenario, even aim for the $40,000 resistance.
However, if Bitcoin struggles to surpass the $37,570 resistance zone, it may face continued downward pressure. Immediate support on the downside is expected around the $36,720 level, with the next major support at $36,500. A breach below $36,500 poses a risk of further declines, potentially leading the price towards the near-term support at $35,650, and the subsequent key support or target could be $35,000.