Bitcoin price is consolidating above the USD 37,500 support zone. BTC could attempt a strong rise if there is a clear move above the USD 38,400 resistance.
- Bitcoin is still struggling to break the $38,500 resistance zone.
- The price is trading above USD 37,400 and the 100 hourly Simple Moving Average.
- A major bullish trendline is forming with support near $37,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could rise again and attempt to clear the $38,500 resistance.
Bitcoin price remains supported
Bitcoin price is still trading well below the USD 38,500 resistance zone. The last swing high was formed around $38,419 before a downward correction took place.
BTC fell below the USD 38,000 level. There was a move below the 23.6% Fib retracement level of the key rise from the $36,721 swing low to the $38,419 high. The price even spiked below the $37,650 support, but the downsides were limited.
A low formed near $37,501 and the price is now consolidating. It is now testing the 50% Fib retracement level of the recent decline from the $38,419 swing high to the $37,501 low.
Bitcoin is now trading above $37,400 and the 100 hourly Simple Moving Average. There is also a major bullish trendline forming with support around $37,450 on the hourly chart of the BTC/USD pair. On the upside, immediate resistance is around the $38,000 level.
The first major resistance is forming near $38,050 or the 61.8% Fib retracement level of the recent decline from the $38,419 swing high to the $37,501 low, above which the price could move towards the $38,400 resistance zone again.
Source: BTCUSD on TradingView.com
A close above the resistance at $38,400 could spark another rally. The next major resistance could be near USD 39,200, above which BTC could rise towards the USD 39,500 level. Even more gains could send BTC towards the USD 40,000 resistance.
More disadvantages of BTC?
If Bitcoin fails to rise above the USD 38,050 resistance zone, it could trigger another decline. Immediate support on the downside is near the $37,600 level or the 100 hourly SMA.
The next major support is around $37,450 and the trendline. If there is a move below $37,450, there is a risk of more downside. In the mentioned case, the price could fall towards the support at $36,720 in the short term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – USD 37,600, followed by USD 37,450.
Major resistance levels – $38,050, $38,400 and $39,500.