The price of Bitcoin is undergoing a correction from the $38,000 level, with BTC currently in a consolidation phase and potentially targeting further gains above the $37,250 resistance zone.
Bitcoin initiated a corrective move following resistance at $38,000.
The current price hovers around $37,000, aligning with the 100-hourly Simple Moving Average.
On the hourly chart of the BTC/USD pair (data feed from Kraken), a short-term declining channel is taking shape, with resistance around $37,250.
The pair is in the process of consolidating its gains and may initiate a new uptrend toward the $38,000 mark.
Bitcoin’s Price Continues its Upward Trajectory
Bitcoin’s price initiated a fresh upswing, surpassing the $36,800 resistance area. With momentum, BTC extended its gains beyond the $37,000 resistance, entering a positive trajectory.
The price even surged towards $38,000 but experienced a corrective dip to $35,850. Despite this, a subsequent upward movement transpired, breaching the $37,250 level. However, bearish activity emerged around $37,500, forming a peak at that level, and the price is presently consolidating its gains.
A dip below the $37,250 mark occurred, leading to a test of the 50% Fibonacci retracement level of the upward swing from the $35,891 low to the $37,500 high.
Currently, Bitcoin is trading in the vicinity of $37,000, closely aligned with the 100-hourly Simple Moving Average. Looking ahead, immediate resistance lies around the $37,200 level. Additionally, an observable short-term declining channel has formed, presenting resistance near $37,250 on the hourly chart of the BTC/USD pair.
The upcoming significant resistance level is anticipated around $37,500. Surpassing this threshold could potentially trigger a further upward acceleration in price. If this scenario unfolds, the next target might be the $38,000 level. Continued gains could propel BTC towards the $38,800 level.
Could BTC Experience Further Downward Movement?
If Bitcoin is unable to surpass the $37,250 resistance zone, there is a possibility of a continued downward trajectory. Immediate support on the downside is expected around the $36,700 level.
The subsequent significant support lies near the $36,500 zone or the 61.8% Fibonacci retracement level of the upward movement from the $35,891 swing low to the $37,500 high. A breach below $36,500 raises the potential for further downside movement, with the price potentially declining toward the crucial support at $36,000 in the short term.
Key technical indicators include:
- Hourly MACD: The MACD is currently losing momentum in the bullish zone.
- Hourly RSI (Relative Strength Index): The RSI for BTC/USD has dipped below the 50 level.
Major support levels include $36,700, followed by $36,500, while major resistance levels are situated at $37,250, $37,500, and $38,000.