Bitcoin

Bitcoin Recovering Sharply, Why Bitcoin Could Rally Over $38,000


Bitcoin price started a strong increase above the $35,000 resistance level against the US Dollar. BTC is currently showing a lot of positive signs and may even rise above $38,000.

  • Bitcoin has started steadily increasing above the $35,000 and $36,000 resistance levels.
  • The price is currently well above $36,000 and the 100 hourly simple moving average.
  • There was a break above the major downtrend line with resistance near $35,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to accelerate higher if it clears the $38,000 resistance area in the near term.

Bitcoin price turns green

Bitcoin found strong buying interest near the $31,000 region and started a file fixed increase. BTC broke several important hurdles near $35,000 to move into positive territory.

There was also a break above the major downtrend line with resistance near $35,000 on the hourly chart of the BTC/USD pair. The pair settled above the $36000 resistance level and Simple moving average per 100 hours.

Bitcoin surged above $37,000 and traded at $37,484. It is now consolidating gains above the $37,000 level. There is immediate support near the $36,500 level. The first major support is near the $36000 area. It is close to the 23.6% Fib retracement level of the upward move from the $31,050 swing low to $37,484 high.

Source: BTCUSD on TradingView.com

The next major support is near the $35,000 level and the 100 hourly simple moving average. The 50% Fib retracement level of the upward move from the $31,050 swing low to $37,484 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 area, above which the price could rise towards the $40,000 level in the near term.

Supporting Bitcoin dips?

If Bitcoin fails to surpass the $38,000 resistance, it may start a downside correction. There is initial support on the downside near the $36,500 level.

The first major support is near the $36,000 level. The major support is now forming near the $35,000 level and the hourly 100 SMA. If the price fails to stay above $35,000, the price may drop to $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 well above the 50 level.

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

Key resistance levels – $37,500, $38,000, and $40K.



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