Bitcoin Price Revisits $38K, Why BTC Dips Turn Attractive

Bitcoin price rose bullishly, removing the $ 38,000 resistance against the US dollar. BTC could correct lower but the bulls are likely to remain active above $ 37,200.

  • Bitcoin extended its surge and even solved the USD 38,000 resistance (as discussed yesterday).
  • The price is now above $ 37,500 and the 100 hour simple moving average.
  • Two major bullish trend lines are forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with support near USD 37,200 and USD 36,000.
  • The pair could correct a few points but the bulls are likely to protect sharp falls below $ 37,000.

Bitcoin price is up 5%

Yesterday we talked about the high chances of a move towards the resistance of the Bitcoin price of $ 38,000. BTC followed a bullish path above the $ 36,000 level and overcame many hurdles near the $ 37,000 level.

It even broke the $ 38,000 resistance and was well above the 100-hour simple moving average. It seems like market sentiment has improved after Ethereum traded to a new all-time high near $ 1,700. BTC also hit a new monthly high of $ 38,342 and is currently consolidating gains.

Initial downside support is near the USD 37,650 level. It is close to the recent upward move in the Fib retracement of 23.6% from the low of $ 35,592 to the high of $ 38,342.

Source: BTCUSD on TradingView.com

There are also two major bullish trend lines forming with support near USD 37,200 and USD 36,000 on the hourly chart of the BTC / USD pair. The first trendline is close to the recent upward move of the 50% Fib retracement from the low of $ 35,592 to the high of $ 38,342.

On the upside, the price is facing hurdles near the $ 38,100 and $ 38,200 levels. If there is a significant break above the $ 38,200 level and recent surge, the bulls are likely to aim for a test of the $ 40,000 level in the short term.

Dips supported in BTC?

If Bitcoin fails to break the USD 38,200 resistance zone, it could correct lower in the short term. The first big support is near the USD 37,200 level and the trend line.

The next major support is near the $ 36,700 level (a multi-touch zone). Further losses could short term the price towards the second bullish trendline at $ 36,000.

Technical indicators:

Hourly MACD – The MACD is gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now well above the 60 level.

Major support levels – $ 37,200 followed by $ 36,700.

Main Resistance Levels – $ 38,100, $ 38,200, and $ 39,500.