Bitcoin Reverse and again found support near $34,300. It has started a strong recovery against the US Dollar.
At the time of scripting, we’ve found out, Bitcoin found support near the $34,300 and $34,500 levels.
The price is trading above $38,000 and the 100 hourly simple moving average. There is a key bullish trend line forming with support near $37,600 on the hourly chart of the BTC/USD pair./
Further, the pair could rise further if there is a clear move above $39,500 and $40,000.
Bitcoin Reversed and Gains Momentum
Bitcoin price extended decline below the $35,000 support zone. However, BTC found support near the $34,300 and $34,500 levels. A low was formed near $34,333, and the price started a strong upward move at the time of writing.
Further, the price climbed above the $36,500 and $37,000 resistance levels. The bulls were able to push the price above the $38,000 level and the 100 hourly simple moving average. Even spiked above the $39,500 resistance level, but there was no upside continuation.
Moreover, a high is formed near $39,739, and the price is now consolidating gains. It traded below the 23.6% Fib retracement level of the upward move from the $34,333 swing low to $39,739 high.
In addition, Bitcoin is now trading above $38,000 and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $37,600 on the hourly chart of the BTC/USD pair.
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On the upside, immediate resistance is near the $39,200 level. The next key resistance is near the $39,500 level. The main resistance is still near the $40,000 level. A clear move above the $40,000 resistance could send the price further higher. In the stated case, it could even test $41,200. Bitcoin reverse has clearly changed the game!
Dips Limited in BTC?
If bitcoin fails to clear the $39,500 resistance zone, it could start a downside correction. Immediate support on the downside is near the $38,000 zone.
The next major support is seen near the $37,800 level and the trend line. If there is a downside break below the trend line support, the price might gain bearish momentum towards $36,000.
Technical Indicators:
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Major Resistance Levels – $39,200, $39,500 and $40,000.
Major Support Levels – $38,000, followed by $37,800.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 50 level.
