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Bitcoin price surged above the $ 40,000 level before starting a downside correction against the US Dollar. BTC is currently testing a large support at $ 38,600 and could drop below that to $ 36,000.
Bitcoin climbed above the $ 38,000 resistance but struggled to stay above $ 40,000.
The price is trading near the $ 38,600 support, but is well above the 100 simple moving average.
There is a key bullish trend line formed with support near $ 38,650 on the 4-hour chart of the BTC / USD pair.
The pair could drop substantially to $ 36,000 or rise above $ 40,000.
Bitcoin price is at risk
Last week, bitcoin price saw a good upward move above the $ 36,000 resistance against the US Dollar. The BTC / USD pair even climbed above the $ 38,000 resistance to move into a positive zone.
The price broke the $ 40,000 resistance and moved above the 100 simple moving average (4 hours). A high was formed around $ 41,050 before the price started a downside correction. There was a break below the $ 39,500 and $ 39,000 levels.
There is also an important bullish trend line formed with support near $ 38,650 on the 4-hour chart of the BTC / USD pair.
A downside break below the trendline support could open the doors for a larger drop below $ 37,000. The next major support is near the $ 36,000 level.
If Bitcoin stays above the trendline support, there is a chance for a new increase towards above $ 39,500. An initial resistance on the upside is near the $ 40,000 level.
Technical indicators
4-hour MACD – The MACD for BTC / USD is slowly gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC / USD is still above the 50 level.
Major Support Level – $ 38,600.
Major Resistance Level – $ 40,000.
