Technical Analysis: BTC Price Lacks Momentum Above $38.5K, But Dips Likely To Be Restricted

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BTC Price extended above the $38,800 resistance zone against the US Dollar. BTC is now struggling near $39,200 and might correct a few points at the time of scripting. 

Also, Bitcoin started a fresh increase and was able to clear the $38,500 resistance zone. Therefore, the price is now trading above $38,000 and the 100 hourly simple moving average.

Moreover, there is a main bullish trend line forming with support near $37,650 on the hourly chart of the BTC/USD pair. 

The pair could continue to rise if it stays above the $37,500 support zone in the near term.

Consolidation in the BTC Price 

BTC Price remained strong above the $37,500 pivot level. BTC extended the increase and was able to clear the $38,500 resistance zone at the time of writing. 

Further, the BTC price even spiked above the $39,000 level. It basically settled above the 100 hourly simple moving average. 

A high has formed near the $39,290 level, and the price is now consolidating gains. There was a slight decline below the $38,800 level.

Furthermore, Bitcoin traded below the 23.6% Fib retracement level of the recent increase from the $36,665 swing low to $39,290 high. Though, it is trading above $38,000 and the 100 hourly simple moving average.

An initial resistance is currently at the $38,800 level. Though, the initial major resistance is near the $39,200 zone. A clear move above the $39,200 zone might push the price towards the $40,000 resistance zone. 

Additionally, any more gains may perhaps open the doors for a more significant increase in the coming sessions. The next major resistance above $40,000 might be near the $41,200 level.

Downsides Restricted in Bitcoin

If BTC Price fails to start a fresh increase above $39,200, it could start a downside correction. Immediate support on the downside is near the $38,500 zone.

The first significant support is seen near the $38,000 zone. It is near the 50% Fib retracement level of the recent increase from the $36,665 swing low to $39,290 high. The main support is near the trend line and $37,500. A downside break below the $37,500 support zone may perhaps call for a sharp decline in the near term.

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