TA: Bitcoin Smashes Key Resistance, Why Dips In BTC Are Now Attractive
Bitcoin price broke the main $36,000 and $36,500 resistance levels against the US Dollar. BTC is back in a positive zone and it is likely to continue higher towards $38,800 and $39,200.
- Bitcoin climbed higher nicely and it was able to clear the 36,000 and $36,500 resistance levels.
- The price is now trading nicely above the $37,000 level and the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance near $34,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to move higher towards the $38,800 and $39,200 resistance levels.
Bitcoin Price Jumps 10%
After forming a support base above $32,000, bitcoin price started a fresh increase. BTC surpassed the $34,000 and $35,000 resistance levels to move into a positive zone.
The bulls gained strength when there was a break above a key bearish trend line with resistance near $34,300 on the hourly chart of the BTC/USD pair. The pair consolidated above the trend line before it climbed above the $36,000 resistance level.
There was a strong wave and the price was able to clear the $37,000 level as well. The price traded as high as $38,223 and settled well above the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
On the downside, an initial support is near the $36,800 level. It is close to the 23.6% Fib retracement level of the recent increase from the $32,320 swing low to $38,223 high. The main support is now forming near the $36,000 level and the 100 hourly simple moving average (the recent breakout zone).
Bitcoin price is clearly showing positive signs and it seems like it could continue to rise towards the $38,800 resistance level. The next key resistance is at $39,200, above which the price could retest $40,000.
Dips Are Attractive in BTC?
If bitcoin starts a downside correction, the $36,000 zone is likely to act as a massive strong. The next support is near the $35,250 level. It is close to the 50% Fib retracement level of the recent increase from the $32,320 swing low to $38,223 high.
A downside break below the $35,200 and $35,000 support levels may possibly push the price back into a bearish zone in the near term.
Technical indicators:
Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level.
Major Support Levels – $36,250, followed by $36,000.
Major Resistance Levels – $38,250, $38,800 and $39,200.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow