Bitcoin price gains above the $ 38,000 pivot level against the US Dollar. BTC is signaling more gains above the $ 40,000 resistance zone in the near term. According to the technical analysis of NewsBTC’s Aayush Jindal:
- Bitcoin is showing positive signals above the $ 37,000 and $ 38,000 resistance levels.
- The price is trading well above the $ 37,000 zone and the 100 hourly simple moving average.
- There was a break above a significant contracting triangle formation with resistance close to $ 38,000 on the hourly chart of the BTC / USD pair (based on Kraken data).
- The pair is likely to rise above the $ 39,500 and $ 40,000 resistance levels.
Bitcoin (BTC) Price Aims Upward
Bitcoin fell after testing the $ 40,000 resistance zone. BTC fell below $ 38,000 but remained supported near the $ 37,000 zone and the 100 hourly simple moving average.
A low was formed around $ 36,500 and the price started a new uptrend. It broke the $ 37,000 and $ 38,000 resistance levels. There was a break above the 50% Fib retracement level of the last drop from $ 40,155 to $ 36,508.
There was also a break above a significant contracting triangle formation with resistance near $ 38,000 on the hourly chart of the BTC / USD pair. The pair is currently trading above the $ 37,000 zone and the 100 hourly simple moving average.
An immediate resistance is near the 76.4% Fib retracement level of the recent drop from $ 40,155 to $ 36,508. The main resistance is still near the $ 40,000 zone. A clear upside break above the $ 40,000 resistance zone could trigger a strong upward move.
The next major resistance is near the $ 42,000 level. More gains could open the doors for a bigger recovery towards the $ 45,000 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 $ 38,200 level.
The first major support is still near the $ 37,000 zone and the 100 hourly SMA. If there is a downside break below the $ 37,000 support, the price could drop towards the $ 35,000 support zone in the near term.
- Hourly MACD – The MACD is now gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is well above the 50 level.
- Major Support Levels – $ 38,200 followed by $ 37,000
- Major Resistance Levels – $ 39,500, $ 40,000 and $ 42,000