Bitcoin price gained bullish momentum above the $ 38,000 resistance against the US dollar. BTC is currently consolidating its earnings and will likely continue to be supported around $ 37,000. According to the technical analysis of NewsBTC’s Aayush Jindal:
- Bitcoin started a steady rise above the $ 37,000 and $ 38,000 resistance levels.
- The price is currently trading above the $ 37,000 zone and the 100 hourly simple moving average.
- There is a short-term contracting triangle formation with resistance around $ 39,500 on the hourly chart of the BTC / USD pair (based on Kraken data).
- The pair may correct the decline, but the bulls will likely hold the $ 37,000 zone and the 100 hourly SMA.
Bitcoin (BTC) Price Turns Green
Bitcoin continued to trade above the $ 35,000 level and began a new surge. BTC broke the $ 37,000 resistance zone and the 100 hourly simple moving average to move into a positive zone.
The price even broke the $ 38,000 level and continued its upward movement. The price even tested the $ 40,000 resistance zone and formed a high around $ 40,021. It is currently consolidating earnings below the $ 40,000 and $ 39,500 levels.
There is also a short-term contracting triangle formation with resistance around $ 39,500 on the hourly chart of the BTC / USD pair. Initial support on the downside is near the $ 38,000 level. The 31,000 23.6% Fib retracement level of the last wave from $ 31,000 to $ 40,000 is also near the $ 38,000 area.
Bitcoin price needs to clear the $ 39,500 and $ 40,000 resistance levels to start a new rise. The next major resistance is near the $ 41,500 level. More gains could open the doors for a bigger recovery towards the $ 45,000 level. A mid-level resistance is near the $ 43,200 level.
Will Bitcoin (BTC) Fall?
If Bitcoin fails to clear the $ 40,000 resistance, there is a risk of a downside correction. Initial support on the downside is near the $ 38,000 level.
The first major support is currently occurring near the $ 37,000 zone and the 100 hourly SMA. A downside break below the $ 37,000 support could push the price towards the $ 35,550 support zone. This is near the 50% Fib retracement level of the last wave high from $ 31,000 to $ 40,000.
- Hourly MACD – The MACD is slowly decelerating in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is falling towards the 50 level.
- Major Support Levels – $ 38,000 followed by $ 37,000
- Major Resistance Levels – $ 39,500, $ 40,000 and $ 41,500.