Bitcoin

New Bitcoin Signals Surge, Here’s Why $37,000 Is Key


Bitcoin price retested the $35,000 support level against the US Dollar. Bitcoin is rising now, but it must cross $37,000 and the 100 hourly SMA for a steady increase.

  • Bitcoin is recovering above the $35,000 support area.
  • The price is currently well below $37,000 and the 100 hourly simple moving average.
  • There was a break above the major downtrend line with resistance near $36,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must cross $37,000 and the 100 hourly SMA to start a new increase in the near term.

Bitcoin price faces major resistance

Bitcoin fails to stay above $37,000 support area Its descent extended. BTC even broke the $36,000 support level and settled below the 100 hourly simple moving average.

There was a rally below the $35,000 support level. A bottom was formed near $34,830 and the price is now correcting higher. There was a break above the $36,000 resistance level. The price rose above the 50% Fib retracement level of the recent decline from $37,915 to $34,830.

There was also a break above the major downtrend line with resistance near $36,000 on the hourly chart of the BTC/USD pair. The pair is still well below $37,000 and Simple moving average per 100 hours.

Source: BTCUSD on TradingView.com

The 76.4% Fibonacci retracement level of the recent decline from $37,915 to the $34,830 low is also nearing $37,200 to act as a major obstacle for the bulls. If there is a clear bullish break above $37,000 and $37,200, the price could start a significant increase.

The first major resistance is near the $38,500 level. The main resistance is still near the $40,000 area. A clear break above the $40,000 level could set the pace for an even bigger increase.

A new drop in bitcoin?

If Bitcoin fails to break above the $37,000 resistance, it may start a new decline. There is initial support on the downside near the $36,000 level.

The first major support is near the $35,500 level. If there is a downside break below the $35,500 and $35,000 support, the price may start a sharp decline towards $32,000.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Key support levels – $36,000, followed by $35,500.

The main resistance levels are $37,000, $38,500 and $40K.



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