Bitcoin price recovered all losses and climbed above $37,000. BTC is now eyeing a major upside break above the USD 37,750 and USD 38,000 resistance levels.
- Bitcoin is showing positive signs and testing the resistance at $37,750.
- The price is trading above USD 37,000 and the 100 hourly Simple Moving Average.
- There was a break above a major bearish trendline with resistance around $37,150 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a big rise if it breaks the $38,000 resistance zone.
Bitcoin price regains strength
Bitcoin price began a downward correction following reports of Binance’s settlement and CZ’s resignation. BTC fell below the USD 37,000 support. However, the bulls were active near the USD 35,650 support zone.
A low was formed around $35,645 and the price started to rise again. It recovered all losses and climbed above the USD 37,000 resistance. There was a break above a major bearish trendline with resistance around $37,150 on the hourly chart of the BTC/USD pair.
The pair even broke the USD 37,500 level and tested the main hurdle at USD 37,750. Bitcoin is now trading above $37,000 and the 100 hourly Simple Moving Average. It is also above the 23.6% Fib retracement level of the upward move from the $35,645 swing low to the $37,777 high.
On the upside, immediate resistance is around the $37,750 level. The main resistance is now forming around the $38,000 level. A close above the $38,000 resistance could trigger a strong upside.
Source: BTCUSD on TradingView.com
The next major resistance could be near USD 38,800. A clear move above the USD 38,800 resistance could send the price further upwards towards the USD 39,200 level. In the said case, it could even test the USD 40,000 resistance.
Another rejection in BTC?
If Bitcoin fails to rise above the USD 37,750 resistance zone, it could start a new decline. The immediate downside support is near the USD 37,150 level.
The next major support is $36,700 or the 50% Fib retracement level of the upward move from the $35,645 swing low to the $37,777 high. If there is a move below $36,700, there is a risk of more downside. In the mentioned case, the price could fall towards the support at $36,150 in the short term. The next major support or target could be $35,650.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – USD 36,700, followed by USD 35,650.
Major resistance levels – $37,750, $38,000 and $38,800.