Bitcoin found support near $34,300 and started a strong recovery against the dollar. BTC has climbed above $38,000 but is still struggling for $40,000, according to analysis by NewsBTC’s Aayush Jindal.
Bitcoin Gained Acceleration
Bitcoin price dropped below the $35,000 support zone. However, BTC found support near the $34,300 and $34,500 levels. A bottom was formed near $34,333 and the price started a strong upward move.
BTC climbed above the $36,500 and $37,000 resistance levels. The bulls managed to push the price above the $38,000 level and the 100 hourly simple moving average. It even rallied above the $39,500 resistance level, but there was no upside continuation. A local top was formed near $39,739 and the price is now consolidating gains.
Bitcoin is currently 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.
An 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 push the price higher. In the stated situation, it could even test $41,200.
Are Bitcoin Drops Limited?
Jindal says that if Bitcoin fails to break past the $39,500 resistance zone, it could start a downside correction. An 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 trendline support, the price could gain bearish momentum towards $36,000.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 50 level.
- Major Support Levels – $38,000 then $37,800
- Major Resistance Levels – $39,200, 39,500 and $40,000
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