Bitcoin Price Rallies 5% and Seems Primed To Clear the $38K Hurdle

Bitcoin price resumed its rise from the $34,650 support. BTC is up over 5% and is now trying to break above the $38,000 resistance zone.

• Bitcoin started a new rally from the $34,650 support zone.
• The price is trading above $36,500 and the 100 hourly simple moving average.
• There was a break above a major downtrend line with resistance near $36,300 on the hourly chart of the BTC/USD pair (Kraken data feed).
• The pair could continue to rise if it breaks the $38,000 resistance zone.

Bitcoin price cuts all losses

The price of Bitcoin has started a downward correction compared to the $38,000 Resistance. BTC fell below the $36,000 and $35,500 levels. The price has even fallen below $35,000. However, the bulls were active near the $34,650 support zone.

A low was formed near $34,666 and the price started a further rise. There was a strong increase above the $36,000 and $37,000 levels. There was also a break above a major downtrend line with resistance near $36,300 on the hourly chart of the BTC/USD pair.

Bitcoin price rose over 5% and retested the $38,000 resistance zone. A high forms near $37,950 and the price is now consolidating its gains. It is also trading above $36,500 and the 100-hour simple moving average and the 23.6% Fibonacci retracement level of the upward move from the $34,666 low to $37,950 high.

On the upside, immediate resistance is near the $37,850 level. The next key resistance could be near $38,000 or the recent high. A close above the $38,000 resistance could begin a strong move higher.

Source: BTCUSD on TradingView.com

The first major resistance is near $38,800, above which the price could accelerate further. In the indicated case, it could test the $39,200 level. Any further gains could see BTC reach the $40,000 level.

More losses in BTC?

If Bitcoin fails to move above the $38,000 resistance zone, it could trigger another downward correction. Immediate downside support is near the $37,450 level.

The next major support is $36,500 or the 100 hourly simple moving average. If there is a move below $36,500, there is further downside risk. In the indicated case, the price could fall to the support of $35,850 in the near term.

Technical indicators:

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 60 level.

Major support levels – $37,450, followed by $36,500.

Major resistance levels – $37,850, $38,000 and $38,800.