Bitcoin is attempting to break above the $38,800 resistance zone. According to technical analysis by NewsBTC’s Aayush Jindal, BTC could rise even higher as long as it stays above $37,400.
Bitcoin Starts A New Increase
Bitcoin started a fresh increase after forming a bottom near $36,667. There was a clear move above the $37,500 resistance zone and the 100 hourly simple moving average. Also, there was a break above a major bearish trend line with resistance near $37,450 on the hourly chart of the BTC/USD pair. The pair climbed above the $38,000 resistance zone. A local top was formed near $38,786 and Bitcoin is currently facing major resistance near the $38,800 region.
BTC is now trading near the 23.6% Fib retracement level of the upward move from the $36,667 low to $38,786 high. An initial resistance is near the $38,500 level. The first major resistance is near the $38,800 area. A clear move above the $38,800 zone could push the price higher. The next key resistance is near the $39,500 area. If the bulls can clear the $39,500 level, the price may perhaps clear the $40,000 resistance zone.
Will Bitcoin Drop?
Jindal says that if Bitcoin fails to start a fresh increase above $38,800, it could initiate a downside correction. According to him, an immediate support is near the $38,000 region. The first major support is seen near the $37,750 region. This is close to the 50% Fib retracement level of the upward move from the $36,667 high to $38,786 high. A downside break below the $37,500 support zone could push the price towards the $37,000 support zone.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD is now losing momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
- Main Support Levels – 37,500, then $37,000
- Main Resistance Levels – $38,500, $38,800 and $40,000
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