Bitcoin price gained bullish momentum and released the USD 38,000 resistance against the US dollar. BTC could correct lower, but the bulls are likely to remain active above USD 37,200.
- Bitcoin expanded its gains and even cleared the USD 38,000 resistance (as discussed yesterday).
- The price is now trading above USD 37,500 and the 100 simple hourly moving average.
- There are two main bullish trendlines with supports near USD 37,200 and USD 36,000 on the hourly chart of the BTC / USD pair (Kraken data feed).
- The pair could correct a few points, but the bulls are likely to protect strong dips below USD 37,000.
Bitcoin price is up 5%
Yesterday we discussed high chances of a move towards the USD 38,000 resistance in bitcoin price. BTC followed a bullish path above the USD 36,000 level and cleared many of the hurdles near USD 37,000.
It even broke the USD 38,000 resistance and settled nicely above the 100 simple hourly moving average. It appears that market sentiment has improved since then Ethereum traded to a new all-time high near USD 1,700. BTC also traded to a new monthly high of $ 38,342 and is currently consolidating its gains.
An initial support on the downside is near the USD 37,650 level. It is close to the 23.6% Fib retracement level of the recent upward move from the $ 35,592 swing low to the $ 38,342 high.
Source: BTCUSD on TradingView.com
There are also two major bullish trendlines with supports near USD 37,200 and USD 36,000 on the hourly chart of the BTC / USD pair. The first trend line is close to the 50% Fib retracement level of the recent upward move from the $ 35,592 swing low to the $ 38,342 high.
On the upside, the price is facing hurdles near the USD 38,100 and USD 38,200 levels. If there is a clear break above the USD 38,200 level and the recent higher, the bulls will likely pursue a test of the USD 40,000 level in the near term.
Dips supported in BTC?
If bitcoin fails to clear the USD 38,200 resistance zone, it could correct lower in the near term. The first major support is near the USD 37,200 level and the trendline.
The next major support is near the USD 36,700 level (a multi-touch zone). Even more losses could push the price towards the second bullish trendline in the near term, at $ 36,000.
Hourly MACD – The MACD is gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now well above the 60 level.
Key Support Levels – USD 37,200, followed by USD 36,700.
Key Resistance Levels – USD 38,100, USD 38,200 and USD 39,500.