Bitcoin Eyes Steady Recovery, Why Bulls Might Struggle

Bitcoin began a wave of recovery above $36,000 against US Dollar. BTC needs to settle in the $38,000 area before it can start its steady upward movement.

  • Bitcoin is trying clear the $37500 and $38,000 resistances.
  • The current price trades above $36,500, and the simple 100-hour moving average is at $11,505.
  • On the hourly chart for the BTC/USD pair, there is a breakout pattern with resistance close to $37500 (data feed Kraken).
  • If the pair moves above $38,000, it could begin a steady uptrend.

Bitcoin Price Eyes Upside Continuation

Bitcoin prices managed to keep above the $35,000 mark and launched a wave of recovery. BTC moved into a bullish short-term zone by climbing above $36,000 resistance.

The resistance levels of $36,500, $36,800 and $36,500 were broken. A move was also made above the 23.6% Fib Retracement level, which is the pivotal drop from $43,495 swing high and $32,950 low. Now, it is nearing the $37,000 area and trading at a high level above the 100 hourly simple moving mean.

Surprisingly, the initial resistance lies at $37.400. On the hourly chart for the BTC/USD pair, there is a breakout pattern with resistance at $37,000.

Bitcoin Price

Source: BTCUSD at TradingView.com

It is located near the $38,200 level. The Fib retracement of the key fall from the $43,495 swing high and $32,950 low is at 50%. The upside breakout of the $38,200 resistance may signal an upward movement. Near the $49,000.200 resistance, the next major resistance, the bulls could aim to test $40,000. Additional gains could push bitcoin to the $41,200 mark.

BTC – A New Decline

Bitcoin could experience a further decline if it fails to increase its price above $38,200. The $36,800 area is a support zone for the downside.

Near the $36,000 support zone and 100 hourly SMA is the first significant support. A decline below the $36,000 support level could trigger a new downturn. Near $35,400 is the next support, and below that price may revisit $34,000.

Indicators technical

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 – $36,000, followed by $35,400.

Major Resistance Levels – $37,400, $38,000 and $38,200.

Get more Crypto News at CFX Magazine