Why BTC could rise further
Bitcoin is trying to make an upward breach above the $38,800 resistance zone against the US dollar. BTC could rise further unless it does not stay above $37,400.
Bitcoin started another rise and was able to clear the $38,000 resistance zone. The price is now trading above $37,500 and the 100 hourly simple moving average. There was a break above a major bearish trendline with resistance near $37,450 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair may continue to rise if there is significant movement above the USD 38,800 resistance zone.
Bitcoin price starts to rise again
Bitcoin price corrected lower below the $38,000 pivot level. BTC even traded below $37,000, but the bulls were active around $37,650. A low was formed near $36,667 and the price started a fresh rise.
There was marked movement above the $37,500 resistance zone and the 100 hourly simple moving average. In addition, there was a break above a major bearish trendline with resistance near $37,450 on the hourly chart of the BTC/USD pair.
The pair rose above the $38,000 resistance zone. A high is forming near $38,786 and bitcoin is now facing a major resistance near the $38,800 zone.
It is currently trading near the 23.6% Fib retracement level of the upward move from the $36,667 swing low to $38,786 high. On the upside, an initial resistance is near the USD 38,500 level.
Source: BTCUSD on TradingView.com
The first major resistance is near the $38,800 zone. A clear move above the $38,800 zone could push the price further. The next key resistance is near the $39,500 zone. If the bulls are able to clear the $39,500 level, the price may be able to clear the $40,000 resistance zone.
Disadvantages Limited in BTC?
If bitcoin fails to start a fresh rise above $38,800, it could trigger a downside correction. An immediate support on the downside is near the $38,000 zone.
The first major support is seen near the $37,750 zone. It is near the 50% Fib retracement level of the upward move from the $36,667 swing low to $38,786 high. A downward breach below the $37,500 support zone might push the price towards the $37,000 support zone.
Hourly MACD – The MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $37,500, followed by $37,000.
Major resistance levels – $38,500, $38,800 and $40,000.