TA: Bitcoin Smashes Key Resistance, Why Dips In BTC Are Now Attractive

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price broke the main $36,000 and $36,500 resistance levels against the US Dollar. BTC is back in a positive zone and it is likely to continue higher towards $38,800 and $39,200.

Bitcoin climbed higher nicely and it was able to clear the 36,000 and $36,500 resistance levels.
The price is now trading nicely above the $37,000 level and the 100 hourly simple moving average.
There was a break above a key bearish trend line with resistance near $34,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to move higher towards the $38,800 and $39,200 resistance levels.

Bitcoin Price Jumps 10%

After forming a support base above $32,000, bitcoin price started a fresh increase. BTC surpassed the $34,000 and $35,000 resistance levels to move into a positive zone.

The bulls gained strength when there was a break above a key bearish trend line with resistance near $34,300 on the hourly chart of the BTC/USD pair. The pair consolidated above the trend line before it climbed above the $36,000 resistance level.

There was a strong wave and the price was able to clear the $37,000 level as well. The price traded as high as $38,223 and settled well above the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

On the downside, an initial support is near the $36,800 level. It is close to the 23.6% Fib retracement level of the recent increase from the $32,320 swing low to $38,223 high. The main support is now forming near the $36,000 level and the 100 hourly simple moving average (the recent breakout zone).

Bitcoin price is clearly showing positive signs and it seems like it could continue to rise towards the $38,800 resistance level. The next key resistance is at $39,200, above which the price could retest $40,000.

Dips Are Attractive in BTC?

If bitcoin starts a downside correction, the $36,000 zone is likely to act as a massive strong. The next support is near the $35,250 level. It is close to the 50% Fib retracement level of the recent increase from the $32,320 swing low to $38,223 high.

A downside break below the $35,200 and $35,000 support levels may possibly push the price back into a bearish zone in the near term.

Technical indicators:

Hourly MACD – The MACD is slowly 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 – $36,250, followed by $36,000.

Major Resistance Levels – $38,250, $38,800 and $39,200.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

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At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he's poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush's unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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