Bitcoin (BTC): Why Is $38K Vital for Sellers?

  • Bitcoin’s initial significant support stands around $35,500.
  • The first critical resistance stands around $38K, while the primary resistance remains $38.8K.
  • However, the crypto failed to overcome the barrier at $38.8, plummeting after reaching a high of around $38,719.

Bitcoin (BTC) witnessed its price rising beyond the resistance zone at $37K. The crypto saw remarkable upswings within the past sessions, surpassing the resistance at $38K and 100-hour SMA.

Bitcoin has failed to conquer the hurdle at $38.8K. Nevertheless, the leading crypto by value attained a high near $38,719 before declining again, exploring levels beneath the support at $38K. Bears pushed BTC under the 50% Fibonacci retracement of the upside from $35,561 to the swing peaks at $38,719.

Furthermore, BTC/USD’s hourly timeframe shows a break beneath a critical bullish trend-line, with a support floor around $37,650. The pair traded beneath $37.2K and 100-hour Simple Moving Average.

Meanwhile, BTC tests the support level of $36.8K, the zone near 61.8% Fibonacci retracement area of the upside move from the swing low at $35,561 to $38,719 highs. On the other hand, $37.4K and 100-hour Simple Moving Average represents early resistance.

The first critical resistance zone locates at $38K, while the governing resistance remains near $38.8K. A break past the resistance of $38.8K might reflect the beginning of a stable upside trend. The following massive resistance zone stands around $40,000. A surge beyond this level will mean additional power to bulls.

More BTC Losses?

Failure to launch a reliable upward move beyond $38,000 might reveal further drops. Meanwhile, the closest support to the downside stands at $36K. The first vital support zone stands at $35.5L. If Bitcoin drops beneath this support, it might head towards $34K.

For now, $38,000 remains a critical level for Bitcoin sellers. Bulls need to keep this level to prevent downtrends by Bitcoin. Though optimistic analysts believe Bitcoin will see bullishness this year, market players may need to wait for a while. The token might struggle in the coming week as Fed’s changed approach to curbing inflation. Such developments might see BTC plummeting before rising.

You can share this analysis with fellow crypto investors. Good luck!!!