In a recent setback for cryptocurrency investors, Bitcoin has once again come up short in its attempt to breach the stubborn resistance level at $38,000. In consequence, it appears Bitcoin is etching a double top formation, a bearish signal that may forecast a decline towards the $34,500 support benchmark.
The pronounced pullback from the $38,000 threshold set the stage for a renewed downturn. Bitcoin is currently trading beneath the pivotal $36,750 mark as well as falling below the 100 hourly Simple Moving Average—a technical indicator that often suggests a broader sentiment among traders.
A glimmer of hope is seen in the form of a modest bullish trend line that has emerged, with support hovering near the $36,250 range on the BTC/USD hourly chart. Should Bitcoin fail to maintain above the $35,950 support level, we might witness an intensified sell-off.
As the Bitcoin narrative unfolds, the cryptocurrency made a spirited push towards the $38,000 resistance, only to witness a swift departure from the established highs. The decline was sudden and steep, breaching the support levels at $37,200 and $37,000. The descent did not lose momentum until the $35,500 vicinity, from which point a modest recovery began.
Despite this rebound, Bitcoin has not reclaimed its previous position above the $36,750 figure, nor has it surmounted the 100 hourly Simple Moving Average. However, some short-term relief was found as Bitcoin edged above the 23.6% Fib retracement level, retracing part of its descent from the recent high to its subsequent low.
Looking upwards, Bitcoin encounters immediate resistance at $36,700, with further significant hurdles lining the route towards recovery, notably at $37,000—observable at the 61.8% Fib retracement level. A conclusive breach of the $37,000 resistance could ignite a robust upward trend, with potential resistance awaiting near $37,500. Beyond this, the gates to $38,000 would be opened again, with an even loftier target at $39,200 being within sight, should the rally gain further traction.
Conversely, should Bitcoin remain trapped below the resistance zone at $37,000, the prospects turn bleaker, with the double top pattern potentially reaching completion. Downside support levels are keenly eyed at $36,200 and $36,000. A breach beneath these could potentially precipitate a downturn towards the $35,500 range, with the critical support at $34,500 representing a key focal point for traders.
As technical indicators offer a mixed perspective, the Hourly MACD appears to be waning in the bullish zone, while the Hourly RSI (Relative Strength Index) sits just below the neutral 50 level, indicating a lack of clear momentum.
Amid the current bustling trade and speculation, the major support levels at $36,200 and $35,500, alongside the notable resistance levels at $36,700, $37,000, and the pivotal $38,000, are the figures to watch closely as the Bitcoin saga continues to unfold.