Bitcoin Regains Momentum, Which Could Bring Additional Benefits
Bitcoin found support near $35,550 and started another surge against the US dollar. BTC needs to free up $38,000 for additional benefits in the short term.
Bitcoin corrected lower but the bulls were active near the $35,550 zone. The price is now trading above $37,000 and the 100 hourly simple moving average. There was a break above a major bearish trendline with resistance near $36,500 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could begin a steady rise if there is significant movement above the USD 38,000 resistance.
Bitcoin Price Finds Support
Bitcoin price started a downward correction from the USD 38,500 resistance zone. BTC fell below the USD 36,500 level and the 100 hourly simple moving average.
However, the bulls were active near the $35,550 zone. A low was formed near $35,550 and the price started a fresh rise. There was a marked move above the USD 36,200 and USD 36,500 resistance levels. In addition, there was a break above a key bearish trendline with resistance near $36,500 on the hourly chart of the BTC/USD pair.
The pair is now trading above $37,000 and the 100 hourly simple moving average. It is testing the USD 37,200 resistance zone. It is near the 50% Fib retracement level from the recent drop from the $38,899 swing high to $35,550 low.
On the upside, an initial resistance is near the USD 37,250 level. The first major resistance is near the $37,650 zone. It is near the 61.8% Fib retracement level from the recent drop from the $38,899 swing high to $35,550 low.
Source: BTCUSD on TradingView.com
The main resistance is still near the $38,000 zone. An upward breach above the $38,000 resistance could spark a steady upward move. The next key resistance is near the $38,500 level, above which the bulls may gain strength.
Lose more in BTC?
If bitcoin fails to start a fresh rise above $38,000, it could trigger another drop. An immediate support on the downside is near the $36,500 zone.
The first major support is seen near the USD 35,550 zone. A downward breach below the $35,550 support zone might push the price towards the $34,000 support zone.
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 – $36,500, followed by $35,550.
Major resistance levels – $37,650, $38,000 and $38,500.
