Bitcoin Faces Another Rejection, Here’s What Could Trigger Nasty Decline

Bitcoin price climbed above the $38,000 resistance against the US Dollar, but it failed near $39,500. BTC is correcting lower and it might dive if it breaks the $37,000 support.

Bitcoin failed to gain momentum for a break above $39,500 and $40,000.
The price is currently trading above $37,000 and the 100 hourly simple moving average.
There is a major rising channel forming with support near $37,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair must stay above $37,000 and the 100 hourly SMA to avoid a major decline.

Bitcoin Price Trims Gains
Bitcoin started a decent increase above the $37,500 resistance zone. BTC even broke the $38,000 resistance level and settled well above the 100 hourly simple moving average.
The bulls gained strength for a push above the $39,000 level. However, they struggled to a move towards the $40,000 level. The price topped near the $39,500 level and it recently started a fresh decline. There was a break below the $38,500 and $38,000 levels.
Bitcoin traded below the 50% Fib retracement level of the upward move from the $35,925 swing low to $39,500 high. It is currently trading above $37,000 and the 100 hourly simple moving average.
An immediate support on the downside is near the $37,500 level. There is also a major rising channel forming with support near $37,400 on the hourly chart of the BTC/USD pair. The channel support is close to the 61.8% Fib retracement level of the upward move from the $35,925 swing low to $39,500 high.

Source: BTCUSD on TradingView.com
On the upside, an immediate resistance is near the $38,200 level. The first major resistance is near the $39,500 level. The main resistance is still near the $40,000 zone. A clear break above the $40,000 level could set the pace for a larger increase.
Downside Break in BTC?
If bitcoin fails to clear the $38,500 resistance, it could extend its decline. An initial support on the downside is near the $37,500 level.
The first major support is near the $37,200 level and the 100 hourly simple moving average. If there is a downside break below the $37,200 support and $37,000, the price could start a sharp decline towards $35,000.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $37,200, followed by $37,000.
Major Resistance Levels – $38,500, $39,500 and $40,000.

bitcoin
Bitcoin (BTC) $ 26,784.18
ethereum
Ethereum (ETH) $ 1,868.16
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 299.84
usd-coin
USD Coin (USDC) $ 1.00
xrp
XRP (XRP) $ 0.534600
staked-ether
Lido Staked Ether (STETH) $ 1,867.06
cardano
Cardano (ADA) $ 0.373478
dogecoin
Dogecoin (DOGE) $ 0.071400
solana
Solana (SOL) $ 21.52
matic-network
Polygon (MATIC) $ 0.886799
tron
TRON (TRX) $ 0.081523
litecoin
Litecoin (LTC) $ 92.29
polkadot
Polkadot (DOT) $ 5.28
binance-usd
Binance USD (BUSD) $ 1.00
avalanche-2
Avalanche (AVAX) $ 14.81
shiba-inu
Shiba Inu (SHIB) $ 0.000008
dai
Dai (DAI) $ 1.00
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 26,770.17
uniswap
Uniswap (UNI) $ 4.96
leo-token
LEO Token (LEO) $ 3.60
chainlink
Chainlink (LINK) $ 6.36
cosmos
Cosmos Hub (ATOM) $ 10.63
okb
OKB (OKB) $ 45.35
monero
Monero (XMR) $ 146.03
the-open-network
Toncoin (TON) $ 1.73
ethereum-classic
Ethereum Classic (ETC) $ 17.92
stellar
Stellar (XLM) $ 0.090988
bitcoin-cash
Bitcoin Cash (BCH) $ 113.52
internet-computer
Internet Computer (ICP) $ 4.69
true-usd
TrueUSD (TUSD) $ 1.00
lido-dao
Lido DAO (LDO) $ 2.28
filecoin
Filecoin (FIL) $ 4.62
aptos
Aptos (APT) $ 8.76
quant-network
Quant (QNT) $ 116.06
hedera-hashgraph
Hedera (HBAR) $ 0.050329
crypto-com-chain
Cronos (CRO) $ 0.060836
near
NEAR Protocol (NEAR) $ 1.64
arbitrum
Arbitrum (ARB) $ 1.17
vechain
VeChain (VET) $ 0.019432
apecoin
ApeCoin (APE) $ 3.18
the-sandbox
The Sandbox (SAND) $ 0.607794
the-graph
The Graph (GRT) $ 0.122716
algorand
Algorand (ALGO) $ 0.149186
paxos-standard
Pax Dollar (USDP) $ 1.00
frax
Frax (FRAX) $ 0.999422
eos
EOS (EOS) $ 0.903639
render-token
Render (RNDR) $ 2.68
decentraland
Decentraland (MANA) $ 0.528383
rocket-pool
Rocket Pool (RPL) $ 49.03