Bitcoin price is consolidating above the $37,500 support zone. BTC could attempt a strong increase if there is a clear move above the $38,400 resistance.
Bitcoin is still struggling to clear the $38,500 resistance zone.
The price is trading above $37,400 and the 100 hourly Simple moving average.
There is a major bullish trend line forming with support near $37,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start another increase and attempt to clear the $38,500 resistance.
Bitcoin Price Remains Supported
Bitcoin price is still trading well below the $38,500 resistance zone. The last swing high was formed near $38,419 before there was a downside correction.
BTC declined below the $38,000 level. There was a move below the 23.6% Fib retracement level of the key increase from the $36,721 swing low to the $38,419 high. The price even spiked below the $37,650 support but downsides were limited.
A low was 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 trend line forming with support near $37,450 on the hourly chart of the BTC/USD pair. On the upside, immediate resistance is near 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 might revisit the $38,400 resistance zone.
Source: BTCUSD on TradingView.com
A close above the $38,400 resistance might start a fresh rally. The next key resistance could be near $39,200, above which BTC could rise toward the $39,500 level. Any more gains might send BTC toward the $40,000 resistance.
More Downsides In BTC?
If Bitcoin fails to rise above the $38,050 resistance zone, it could start another decline. Immediate support on the downside is near the $37,600 level or the 100 hourly SMA.
The next major support is near $37,450 and the trend line. If there is a move below $37,450, there is a risk of more downsides. In the stated case, the price could drop toward the $36,720 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $37,600, followed by $37,450.
Major Resistance Levels – $38,050, $38,400, and $39,500.
