04 Feb TA: Bitcoin Price Revisits $38K, Why BTC Dips Turn Attractive
Bitcoin price gained bullish momentum and cleared 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 rise and it even cleared the $38,000 resistance (as discussed yesterday).
- The price is now trading above $37,500 and the 100 hourly simple moving average.
- There are two major bullish trend lines forming with support near $37,200 and $36,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct a few points, but the bulls are likely to protect strong dips below $37,000.
Bitcoin Price is Up 5%
Yesterday, we discussed high chances of a move towards the $38,000 resistance in bitcoin price. BTC did follow a bullish path above the $36,000 level and it cleared many hurdles near $37,000.
It even broke the $38,000 resistance and settled nicely above the 100 hourly simple moving average. It seems like the market sentiment improved after Ethereum traded to a new all-time high near $1,700. BTC also traded to a new monthly high at $38,342 and it is currently consolidating gains.
An initial support on the downside is near the $37,650 level. It is close to the 23.6% Fib retracement level recent upward move from the $35,592 swing low to $38,342 high.
Source: BTCUSD on TradingView.com
There are also two major bullish trend lines forming with support near $37,200 and $36,000 on the hourly chart of the BTC/USD pair. The first trend line is close to the 50% Fib retracement level recent upward move from the $35,592 swing low to $38,342 high.
On the upside, the price is facing hurdles near the $38,100 and $38,200 levels. If there is a clear break above the $38,200 level and the recent higher, the bulls are likely to aim a test of the $40,000 level in the near term.
Dips Supported in BTC?
If bitcoin fails to clear the $38,200 resistance zone, it could correct lower in the short term. The first major support is near the $37,200 level and the trend line.
The next key support is near the $36,700 level (a multi-touch zone). Any more losses could lead the price towards the second bullish trend line at $36,000 in the near term.
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.
Major Resistance Levels – $38,100, $38,200 and $39,500.