Bitcoin price resumed its rise after the USD 34,650 support. BTC is up over 5% and is now trying to break above the $38,000 resistance zone.
- Bitcoin started a new rally from the $34,650 support zone.
- The price is trading above USD 36,500 and the 100 hourly Simple Moving Average.
- There was a break above a major bearish trendline with resistance around $36,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to rise if it breaks the $38,000 resistance zone.
Bitcoin price cuts all losses
Bitcoin price started a downward correction from the USD 38,000 resistance. BTC fell below the USD 36,000 and USD 35,500 levels. The price even peaked below $35,000. However, the bulls were active near the USD 34,650 support zone.
A low was formed near $34,666 and the price started rising again. There was a sharp increase above the USD 36,000 and USD 37,000 levels. There was also a break above a major bearish trendline with resistance around $36,300 on the hourly chart of the BTC/USD pair.
Bitcoin price has risen over 5% and retested the USD 38,000 resistance zone. A high is formed near USD 37,950 and the price is now consolidating gains. It is also trading above $36,500 and the 100 hourly Simple Moving Average and the 23.6% Fib retracement level of the upward move from the $34,666 swing low to the $37,950 high.
On the upside, immediate resistance is around the $37,850 level. The next major resistance could be near $38,000 or the recent high. A close above the $38,000 resistance could trigger a strong upside.
Source: BTCUSD on TradingView.com
The first major resistance is near USD 38,800, above which the price could accelerate further. In the said case, it could test the USD 39,200 level. Any further gains could send BTC towards the $40,000 level.
Lose more in BTC?
If Bitcoin fails to rise above the $38,000 resistance zone, it could trigger another downside correction. The immediate downside support is near the USD 37,450 level.
The next major support is $36,500, or the 100 Hourly Simple Moving Average. If there is a move below $36,500, there is a risk of more downside. In the mentioned case, the price could fall towards the support at USD 35,850 in the short term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 60 level.
Major support levels – USD 37,450, followed by USD 36,500.
Major resistance levels – $37,850, $38,000 and $38,800.
