Bitcoin Price Rallies Over 5%, Testing $38,000 Resistance Zone
Bitcoin has seen a resurgence in price, starting a fresh rally from the $34,650 support zone. The cryptocurrency is now trading above $36,500 and the 100 hourly Simple Moving Average. This increase comes after a break above a major bearish trend line with resistance near $36,300 on the hourly chart of the BTC/USD pair.
According to data from Kraken, Bitcoin has surged over 5% and is now attempting to move above the $38,000 resistance zone. This positive movement comes after a downside correction from the $38,000 resistance, where Bitcoin briefly declined below the $36,000 and $35,500 levels. However, the bulls stepped in near the $34,650 support zone, leading to a low of $34,666 before the fresh increase began.
The cryptocurrency is now consolidating gains after reaching a high of $37,950 and is trading above the 100 hourly Simple Moving Average and the 23.6% Fib retracement level. The immediate resistance is near the $37,850 level, with the next key resistance at $38,000 or the recent high. A close above the $38,000 resistance could signal a strong increase, with the first major resistance at $38,800.
However, if Bitcoin fails to rise above the $38,000 resistance zone, it could start another downside correction. The immediate support on the downside is near the $37,450 level, followed by the 100 hourly Simple Moving Average at $36,500. If the price drops below $36,500, there is a risk of further downsides, potentially testing the $35,850 support in the near term.
In terms of technical indicators, the MACD is now losing pace in the bullish zone, while the RSI for BTC/USD is now above the 60 level.
Overall, the cryptocurrency market is seeing a resurgence in Bitcoin’s price, with the potential for further gains if it can break through the $38,000 resistance zone. However, if it fails to do so, there is a risk of another downside correction, with key support levels at $37,450 and $36,500.
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