TA: Bitcoin Price Gains Traction, Why BTC Could Revisit $38K
Bitcoin price started a steady increase above $35,000 against the US Dollar. BTC is showing positive signs and it could continue to rise towards the $38,000 barrier.
- Bitcoin started a decent increase above the key $35,000 resistance zone.
- The price is now trading above $35,500 and the 100 hourly simple moving average.
- There was a break above a major contracting triangle forming with resistance near $34,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct a few points, but the bulls are likely to aim more upsides above $36,000.
Bitcoin Price is Gaining Momentum
After a close above the $34,200 zone, bitcoin price started a decent increase. BTC broke the main $35,000 resistance level and settled nicely above the 100 hourly simple moving average.
More importantly, there was a break above a major contracting triangle forming with resistance near $34,450 on the hourly chart of the BTC/USD pair. The pair gained bullish momentum and climbed above the $35,500 and $36,000 levels.
A high is formed near $36,341 and the price is currently consolidating gains. An initial support is near the $35,650 level. It is close to the 23.6% Fib retracement level recent upward move from the $33,521 swing low to $36,341 high.
Source: BTCUSD on TradingView.com
The next major support is near the $35,000 level or the 50% Fib retracement level recent upward move from the $33,521 swing low to $36,341 high. On the upside, the $36,200 level is a short-term resistance. A clear break above $36,200 could open the doors for a steady increase towards the $37,000 and $38,000 levels in the near term. An intermediate resistance could be $37,400.
Fresh Dip in BTC?
If bitcoin fails to clear the $36,200 resistance zone, there is a risk of a minor downside correction. The first major support is near the $35,000 level (the recent breakout zone).
The next key support is near the $34,550 level, where the bulls are likely to take a stand. If the bulls fail to protect the $35,000 and $34,550 support levels, the price could move back towards the $33,000 support level.
Hourly MACD – The MACD is showing positive signs in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Levels – $35,000, followed by $34,550.
Major Resistance Levels – $36,200, $37,000 and $37,400.