Bitcoin price cut all losses and rose above $37,000. BTC is now eyeing a major upside reversal above the $37,750 and $38,000 resistance levels.
- Bitcoin is showing positive signs and is testing the resistance of $37,750.
- The price is trading above $37,000 and the 100-hour simple moving average.
- On the hourly chart of the BTC/USD pair (data feed from Kraken), a breakout occurred above a major bearish trendline with resistance near $37,150.
- Breaking out of the $38,000 resistance area, the pair could begin a major rally.
Bitcoin price gains strength again
As news of Binance’s settlement and CZ’s withdrawal came, the price of Bitcoin began to adjust downward. BTC fell below the $37,000 support level. However, the bulls remained active near the $35,650 support zone.
A low was formed near $35,645 and the price began a new rise. It cut all losses and crossed the $37,000 resistance level. On the hourly chart of the BTC/USD pair, a breakout occurred above the main bearish trendline with resistance near $37,150.
The pair even broke above the $37,500 level and tested the major hurdle at $37,750. Bitcoin is currently trading above $37,000 and the 100-hour simple moving average. It is also above the 23.6% Fib retracement level of the rise from the $35,645 swing low to the $37,777 high.
On the other hand, immediate resistance is close to the $37,750 level. Major resistance is currently forming 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 level could be near $38,800. A clear break above the $38,800 resistance could push the price further towards the $39,200 level. If specified, $40,000 resistance may also be tested.
Another rejection from 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 $37,150 level.
The next major support is the 50% Fib retracement level at $36,700 or the rise from the $35,645 swing low to the $37,777 high. There is further downside risk if it falls below $36,700. If indicated, the price may fall towards the $36,150 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 – $36,700, then $35,650.
Key resistance levels – $37,750, $38,000 and $38,800.