Bitcoin Prints Bullish Pattern, Why Dips Turn Attractive For BTC

-

- Advertisment -spot_img

Bitcoin price formed a base above $35,000 and started a fresh increase against the US Dollar. BTC broke the $38,000 resistance and it even traded close to $40,000.

  • Bitcoin started a fresh increase above the $38,000 and $38,500 resistance levels.
  • The price is currently well above $38,000 and the 100 hourly simple moving average.
  • There was a break above a major declining channel with resistance near $36,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could correct lower, but the bulls are likely to remain active near $38,000.

Bitcoin Price Gains Bullish Momentum

Bitcoin declined slowly, but the bulls were active near the $35,000 support zone. BTC formed a base above the $35,000 level and it recently started a strong increase.

There was a clear break above the $36,500 resistance and the 100 hourly simple moving average. More importantly, there was a break above a major declining channel with resistance near $36,200 on the hourly chart of the BTC/USD pair.

The pair gained pace and it broke the key $38,000 resistance level. The upward move was such that the price traded close to the $40,000 level.

Source: BTCUSD on TradingView.com

A high was formed near $39,849 and the price is now correcting lower. It broke the $39,000 support level to start the current correction. An immediate support is near the $38,650 level. It is close to the 23.6% Fib retracement level of the upward wave from the $34,916 swing low to $39,849 high.

On the upside, an initial resistance is near the $39,200 level. The first major resistance is near the $39,800 and $40,000 levels, above which the price likely to gain bullish momentum. The next resistance is near the $42,000 level.

Dips Supported in BTC?

If bitcoin fails to clear the $39,800 resistance, it could start a downside correction. An initial support on the downside is near the $38,600 level.

The first major support is near the $38,000 level. The main support is now forming near the $37,500 level. It is close to the 50% Fib retracement level of the upward wave from the $34,916 swing low to $39,849 high. A downside break below the $37,500 support zone could push the price towards the 100 hourly SMA.

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 correcting lower from the 75 level.

Major Support Levels – $38,000, followed by $37,500.

Major Resistance Levels – $39,500, $39,800 and $40,000.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. AllStocksNews.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Stephen Phillips
He is a complete nerd and a graduate of computer science. He talks about cryptocurrency and blockchain.
- Advertisment -spot_img

Latest News

- Advertisment -spot_img