Bitcoin

Bitcoin prints a bullish pattern, why dips are becoming attractive to Bitcoin


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.

Technical indicators:

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.



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