Bitcoin Eyes Steady Recovery, Why Bulls Are Struggling


Bitcoin started a recovery wave of more than $36,000 against the US dollar. BTC needs to settle above the $38,000 zone to start a steady upward move.

Bitcoin is trying to clear the $37,500 and $38,000 resistance levels. The price is now trading above $36,500 and the 100 hourly simple moving average. A major breakout pattern is forming with resistance near $37,500 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could begin steady upward movement if there is significant movement above the USD 38,000 resistance.

Bitcoin Price Eyes Up Continuation

Bitcoin price managed to stay above the $35,000 zone and started a wave of recovery. BTC climbed above the $36,000 resistance zone to move into a short-term bullish zone.

There was a breach above the USD 36,500 and USD 36,800 resistance levels. Additionally, there was a move above the 23.6% Fib retracement level of the key decline from the $43,495 swing high to $32,950 low. It is now consolidating near the $37,000 level and trading well above the 100 easy moving hourly average.

On the upside, an initial resistance is near the USD 37,400 level. An important breakout pattern is also forming with resistance near $37,500 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

The first major resistance is near the $38,200 zone. It is near the 50% Fib retracement level of the key drop from the $43,495 swing high to $32,950 low. An upward breach above the $38,200 resistance could spark a steady upward move. The next key resistance is near the $49,200 level, above which the bulls could target a test of $40,000. More gains could send bitcoin to the $41,200 level.

New decline in BTC?

If bitcoin fails to start a fresh rise above $38,200, it could trigger another drop. An immediate support on the downside is near the $36,800 zone.

The first major support is seen near the $36,000 zone and the 100-hour SMA. A downward breach below the $36,000 support zone may trigger another drop. The next major support is near $35,400, below which the price could hit $34,000 again.

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 $35,400.

Major resistance levels – $37,400, $38,000 and $38,200.

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