Bitcoin (BTC) Attempts Recovery; Why $38K Is Vital for Reversal

  • BTC remained within a bearish territory beneath the $38K and $36.5K support zones.
  • The price attempted a recovery, targeting $36.5K and 100hr Simple Moving Average. BTC/USD one-hour chart shows a break past the pessimistic trend-line with resistance around $35,450.
  • Bitcoin should overpower the levels at $38K resistance for a massive upside move.

Bitcoin (BTC) extended its fall below $34,000. The crypto launches recovery but has to overcome $38,000 to ensure stable upward action.

BTC Price Targets Recovery

Bitcoin price experienced a continued drop beneath the support of $35K and $34K. The leading crypto also spiked beneath the $33K mark. That way, BTC formed a low near $32,940, and the price displayed a recovery wave recently.

The brief recovery had Bitcoin breaking past the resistance of $35K and $35.5K. Moreover, bulls pushed BTC beyond 23.6% Fibonacci retracement of the latest downswing from $43,490 to $32,940 swing low. Also, the crypto broke beyond a massive pessimistic trend-line with resistance around $35,450 on BTC’s hourly price chart.

Furthermore, Bitcoin rose to value levels of $37,000 before sliding towards $36.5K and 100hr Simple Moving Average. For now, the world’s leading crypto has its initial resistance at $37,000. Meanwhile, the first crucial resistance stands around the $38K territory.

The level sits near 50% Fibonacci retracement of the latest fall from a swing high of $43,490 to $32,940. An upward break beyond $38K might trigger a stable upswing towards the vital level of $40K. The following resistance stands near $41,200, beyond which BTC bulls may target $42K.

More Drop in Bitcoin

Though Bitcoin rose early today, bears appeared aggressive, contemplating downward movements. For now, the pair required a significant move past resistance at $38,000 to catalyze stable uptrends. While publishing this article, Bitcoin traded weak at $36,043.

Initial downside support stands at $36K. Nevertheless, the first crucial support stands at around $35.4K. A drop to violate this support might translate to another fall. A move below $34K will have Bitcoin revisiting its latest lows.

Bitcoin Technical Indicators

  • Support levels – $35.4K and $34K
  • Resistance levels – $37K, $38K and $38.2K