Bitcoin price started a strong increase above the $35,000 resistance against the US Dollar. BTC is currently showing many positive signs and it may even rise above $38,000. According to technical analysis by NewsBTC’s Aayush Jindal:
- Bitcoin started a steady rise above the $35,000 and $36,000 resistance levels.
- The price is now above $36,000 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $35,000 on the hourly chart of the BTC/USD pair (data from Kraken).
- The pair could accelerate further if it clears the $38,000 resistance zone in the near term.
Bitcoin (BTC) Price Turns Green
Bitcoin found strong buying interest near the $31,000 zone and started a steady increase. BTC cleared several key hurdles near $35,000 to move into positive territory.
There was a break above a major bearish trend line with resistance near $35,000 on the hourly chart of the BTC/USD pair. The pair even settled above the $36,000 resistance and the 100 hourly simple moving average.
Bitcoin climbed above the $37,000 level and surged as high as $37,484. An immediate support is near the $36,500 level. The first significant support is near the $36,000 zone. It is close to the 23.6% Fib retracement level of the upward move from the $31,050 low to $37,484 high.
The next major support is near the $35,000 level and the 100 hourly simple moving average. The 50% Fib retracement level of the rise from the $31,050 high to $37,484 high is the next support near the $34,250 level.
On the upside, the first major resistance is near the $37,500 level. The main resistance is near the $38,000 zone, above which the price could rally towards the $40,000 level in the near term.
Will Bitcoin (BTC) Drop?
If bitcoin fails to break the $38,000 resistance, it could start a downside correction. An initial support on the downside is near the $36,500 level.
The first major support is near the $36,000 level. The main support is currently forming near the $35,000 level and the 100 hourly SMA. If the price does not stay above $35,000, it could drop to $32,000.
- Hourly MACD – The MACD is now gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 50 level.
- Major Support Levels – $36,000 then $35,000
- Major Resistance Levels – $37,500, $38,000, and $40,000