The sharp decline in the price of Meta shares led to a decline not only in the stock market, but also in the crypto market. As a result, yesterday the price of Bitcoin fell below $38000 and came close to $36000. However, the bulls managed to keep the Bitcoin price above $36000 and start a recovery. At the time of publication, the BTC/USD pair is trading around 37800.
On the daily chart, the BTC/USD pair continues to trade in a downward range that has been forming since November last year. If you look at the 4-hour chart, you can see that this range limits the growth of the BTC/USD pair around 39300 and 38400. On February 1, the BTC/USD pair bounced off the resistance level of 39300 and began a new bearish correction. This time, the BTC/USD pair bounced off the resistance line and began to decline.
Despite the decline the BTC/USD pair is still trading above MA100, which provides it with support in the area of 37600. If the bulls fail to bring the price of Bitcoin back above $38000 today, we may see a decrease to the support level of 37000. A downward break of this level will trigger a decline to the area of 36300. Any new losses could send the pair to the area of 36000. If the bulls fail to defend the level of 36000, there could be a sharp fall in the near term.
On the other hand, in order to return the price of Bitcoin above $38000, the bulls will need to overcome the intermediate resistance around 37800. A solid break of the upper limit of the descending range and a move above 38000 could set the pace for a sustained increase. However, for a bullish trend to form, BTC/USD needs to close daily above 40000.
