- BTC surpasses $37,000 resistance.
- Crucial hurdles at $37,350 and $38,000.
- Technical indicators signal potential upward rally.
In a notable turn of events, Bitcoin (BTC) is on a robust upward trajectory, surpassing the $37,000 resistance zone and signaling a potential move towards the coveted $40,000 mark. The cryptocurrency found solid support around $35,500 following a recent decline, with bullish momentum steering it to a fresh increase.
Currently trading above $36,700 and the 100-hour Simple Moving Average (SMA), Bitcoin’s positive momentum is emphasized by a key bullish trend line forming with support around $36,720 on the hourly chart of the BTC/USD pair, as per data from Kraken.
The recent upswing saw BTC breaking through critical resistance levels at $36,500 and $37,000. The price climb surpassed the 50% Fibonacci retracement level of the downward wave from the $37,950 swing high to the $35,518 low, even spiking above $37,200.
For the bulls to sustain their momentum and set the stage for a potential move beyond $40,000, Bitcoin needs to secure a clear breakthrough above the $37,350 resistance level. This level aligns closely with the 76.4% Fib retracement level of the downward wave from the $37,950 swing high to the $35,518 low.
Should Bitcoin successfully breach the $37,350 hurdle, the next challenges lie at $37,800 and $38,000. A decisive move above $38,000 could trigger a substantial upward rally, with the initial major resistance situated near $39,200. Surpassing this level might propel BTC toward the psychologically significant $40,000 mark, and further gains could see a potential test of the $42,000 level.
Conversely, a failure to overcome the $37,350 resistance zone could usher in a corrective phase. Immediate support is expected around the $37,000 level, followed by the critical levels at $36,700 and the aforementioned trend line. A breach below $36,700 poses a risk of additional downsides, potentially leading to a decline towards the $35,950 support in the short term, with $35,500 emerging as the subsequent key support level.
Technical indicators reveal a nuanced picture, with the hourly MACD showing signs of losing pace in the bullish zone. Meanwhile, the hourly RSI for BTC/USD remains above the 50 level, indicating positive strength in the current trend.
Key Support Levels:
$37,000, followed by $36,700.
Key Resistance Levels:
$37,350, $37,800, and $38,000.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.