There was a clear move above the 23.6% Fib retracement level of the key drop from the $40,350 swing high to $37,400 low.
However, bitcoin price struggled to gain strength above the $39,000 level.
Besides, there is a major contracting triangle forming with resistance near $38,880 on the hourly chart of the BTC/USD pair.
A close above the $38,880 and $39,000 levels could open the doors for a decent increase.
If bitcoin fails to clear the $38,880 resistance zone, it could start a fresh decline.
The next major support is seen near the $38,200 level and the triangle lower trend line.
He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.
NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins.