Bitcoin price maintains an upward trend above $37,000. BTC is consolidating and could target another rally soon if it clears the $38,000 resistance area.
- Bitcoin is still consolidating below the $37,750 resistance level.
- The price is trading above $37,200 and the 100-hour simple moving average.
- The hourly chart of the BTC/USD pair (data feed from Kraken) shows a short-term contraction triangle forming with resistance near $37,420.
- A break above the $38,000 resistance could lead to significant upside for the currency pair.
Bitcoin price remains supported
Bitcoin price maintained a good bid and began a steady rise above the $37,000 resistance. BTC cut all losses and revisited the $37,750 resistance zone. The bulls still seem to be struggling to break the resistance level of $37,750.
The highest price was reached around $37,848 and the price continues to rise. There was a move below the 23.6% Fib retracement level of the upward move from the $35,645 swing low to the $37,848 high.
Bitcoin is currently trading above $37,200 and the 100-hour simple moving average. On the hourly chart of the BTC/USD pair, there is also a short-term contraction triangle forming resistance near $37,420. Meanwhile, immediate resistance is close to the $37,420 level.
The first major resistance is forming near $37,750. Key resistance is still near the $38,000 level. A break above the $38,0000 resistance could initiate a strong rally.
Source: TradingView.com BTCUSD
The next major resistance could be near $38,800, above which BTC could rise to test the $39,200 level. If indicated, a bounce towards the $40,000 resistance may occur.
Another drop in BTC?
If Bitcoin fails to rise above the $37,750 resistance zone, a new downtrend could begin. Immediate support for the downside is near the $37,200 level.
The next major support levels are $37,000 and the 100-hourly simple moving average. The first key support is the 50% Fib retracement level at $36,750 or the rise from the $35,645 swing low to the $37,848 high. There is further downside risk if the price falls below $36,750. If indicated, the price may fall towards the $36,000 support in the near term. The next major support or target could be $35,650.
Technical indicators:
Hourly MACD – MACD is now losing speed in bullish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $37,000, $36,750.
Key resistance levels – $37,750, $38,000 and $38,800.