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

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

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

Bitcoin is holding gains above the $36,000 support zone.
The price is trading below $37,000 and the 100 hourly Simple moving average.
There is a key bearish trend line forming with resistance near $36,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could make another attempt to gain strength above $37,000.

Bitcoin Price Holds Key Support

Bitcoin price made another attempt to clear the $37,500 resistance. However, BTC failed to continue higher toward the $38,000 resistance. A high was formed near $37,423 and the price started a downside correction.

There was a move below the $37,000 pivot level. The price declined below the $36,500 level but stayed above $36,000. A low is formed near $36,183 and the price is now rising. 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 swing high to the $36,183 low.

Bitcoin is now trading below $37,000 and the 100 hourly Simple moving average. There is also a key bearish trend 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% Fib retracement level of the recent decline from the $37,423 swing high to the $36,183 low. The first major resistance is near $37,000, above which the price might accelerate further higher.

Source: BTCUSD on TradingView.com

In the stated case, it could test the $37,500 level. Any more gains might send BTC toward the $38,000 level, above which the price could gain bullish momentum and rally toward $40,000.

Another Decline In BTC?

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

The next major support is near $36,000. If there is a move below $36,000, there is a risk of more downsides. In the stated case, the price could drop toward the key support at $35,500 in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in 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.