TA: Bitcoin Prints Bullish Pattern, Why Dips Turn Attractive For BTC
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.
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.