Bitcoin price extended its decline below the $38,000 support zone against the US Dollar. BTC is now showing signs of an upside correction as long as it is above $38,000.

Bitcoin extended its decline below the $39,000 and $38,000 support levels.
The price is now trading well below $39,000 and the 100 hourly simple moving average.
There was a break above a crucial bearish trend line with resistance near $38,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a decent increase as long as there is no daily close below $38,000.

Bitcoin Price is Consolidating
Bitcoin price extended its decline below the $39,200 and $39,000 support levels. BTC even broke the $38,500 level to move further into a bearish zone.
The price spiked below the $38,000 support level and it settled well below the 100 hourly simple moving average. A low is formed near $37,660 and the price is now attempting an upside correction. There was a break above the $38,000 level.
Besides, there was a break above a crucial bearish trend line with resistance near $38,200 on the hourly chart of the BTC/USD pair. Bitcoin is now facing resistance near the $38,800 level.

Source: BTCUSD on TradingView.com
It is close to the 23.6% Fib retracement level of the key drop from the $42,630 swing high to $37,660 low. The next major resistance is near the $39,500 level. The main resistance is now forming near the $40,000 level and the 100 hourly simple moving average.
It is near the 50% Fib retracement level of the key drop from the $42,630 swing high to $37,660 low. If there is an upside break above $38,800 and $40,000, bitcoin could gain traction. The next major resistance on the upside is near the $41,450 zone.
More Losses in BTC?
If bitcoin fails to climb above the $38,800 and $40,000 resistance levels, it could continue to move down. An initial support on the downside is near the $38,000 level.
The first major support is now near the $37,800 zone. A clear downside break below the $37,800 support might call for more losses. The next major support is near the $37,000 zone.
Technical indicators:
Hourly MACD – The MACD is slowly losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still well below the 50 level.
Major Support Levels – $38,000, followed by $37,000.
Major Resistance Levels – $38,880, $39,500 and $40,000.