Bitcoin price gained bullish momentum above the $ 38,000 resistance against the US dollar. BTC is now consolidating profits and is expected to remain supported near $ 37,000.
- Bitcoin rose steadily above the $ 37,000 and $ 38,000 resistance levels.
- The price is now trading above the $ 37,000 zone and the 100 hour simple moving average.
- A short-term contraction triangle is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with resistance near USD 39,500.
- The pair could correct lower but the bulls are likely to protect the $ 37,000 zone and 100 hour SMA.
Bitcoin price turns green
Bitcoin stayed well bid above the $ 35,000 level and a new spike began. BTC broke the major resistance zone of $ 37,000 and the simple 100-hour moving average to enter a positive zone.
The price even passed the $ 38,000 level and extended its upward trend. The price even tested the $ 40,000 resistance zone and a high is formed near $ 40,021. It is now consolidating gains below the $ 40,000 and $ 39,500 levels.
A short-term contraction triangle is also forming on the hourly chart of the BTC / USD pair with resistance near USD 39,500. Initial downside support is near the USD 38,000 level. The latest wave’s 23.6% fib retracement level from $ 31,000 to $ 40,000 is also near the $ 38,000 area.
Source: BTCUSD on TradingView.com
To start a new spike, Bitcoin price will have to break through the resistance levels of $ 39,500 and $ 40,000. The next major resistance is near the $ 41,500 level. Further gains could open the doors for a larger rebound towards $ 45,000. Intermediate resistance is near the $ 43,200 level.
Dips Limited in BTC?
If Bitcoin fails to offset the $ 40,000 resistance, there is a risk of a downward correction. Initial downside support is near the USD 38,000 level.
The first major support is now forming near the $ 37,000 zone and the 100 hour SMA. A downside break below the USD 37,000 support could move the price towards the USD 35,550 support zone. It is near the 50% fib retracement level of the recent wave from the $ 31,000 swing low to the $ 40,000 zone.
Hourly MACD – The MACD is slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is moving down towards 50.
Major Support Levels – $ 38,000, followed by $ 37,000.
Main Resistance Levels – $ 39,500, $ 40,000, and $ 41,500.