Bitcoin price formed a base above $35,000 and started a new increase against the US Dollar. BTC broke the $38,000 resistance and traded near $40,000.
- Bitcoin started a fresh increase above the $38,000 and $38,500 resistance levels.
- The price is currently well above $38,000 and the 100 hourly simple moving average.
- There was a break above a major descending channel with resistance near $36,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct lower, but the bulls are likely to remain active near $38,000.
Bitcoin price is gaining bullish momentum
Bitcoin is slowly dropping, but the bulls are active near $35,000 support area. BTC formed a base above $35,000 and recently started a strong rally.
There was a clear break above the $36,500 resistance and the 100 hourly simple moving average. More importantly, there was a break above a major descending channel with resistance near $36,200 on the hourly chart of the BTC/USD pair.
The pair gained speed and broke the key The $38000 resistance level. The upward move was such that the price was trading near the $40,000 level.
Source: BTCUSD on TradingView.com
A top formed near $39,849 and the price is now correcting lower. It broke the $39,000 support level to start the current correction. There is immediate support near the $38,650 level. It is close to the 23.6% Fib retracement level of the upside wave from the $34,916 swing low to $39,849.
On the upside, there is an initial resistance near the $39,200 level. The first major resistance is near the $39,800 and $40,000 levels, above which the price is likely to gain upward momentum. The next resistance is near the $42,000 level.
Supporting Bitcoin dips?
If Bitcoin fails to surpass the $39,800 resistance, it may start a downside correction. There is initial support on the downside near the $38,600 level.
The first major support is near the $38,000 level. The major support is now forming near the $37,500 level. It is close to the 50% Fib retracement level of the upside wave from $34,916 of the swing low to $39,849. A break-down below the $37,500 support area could push the price towards the hourly 100 simple moving average.
Hourly MACD The MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is correcting down from the 75 level.
Key support levels – $38,000, followed by $37,500.
Key resistance levels – $39,500, $39,800 and $40K.