In the ever-fluctuating world of Bitcoin, market corrections from the high of $38,000 are being observed. Currently, Bitcoin is demonstrating a level of consolidation that could indicate potential growth, focusing on breaking the $37,250 resistance barrier.
The recent downturn began in the $38,000 resistance zone, leading to where the cryptocurrency is presently trading, approximately near the $37,000 range, alongside the 100 hourly Simple moving average. Analysts are pointing out a short-term declining channel, but with a resistance hovering around the $37,250 mark on the hourly chart of the BTC/USD pair, the signs are promising. The indicators suggest that Bitcoin is consolidating its gains and may pursue a renewed climb toward $38,000.
Beginning a welcome upward trend, BTC surged past the $36,800 resistance zone. With a positive momentum shift, it triumphed over the $37,000 resistance, propelling the cryptocurrency further into a prosperous realm. A rally towards the $38,000 mark seemed imminent, but an unexpected correction towards $35,850 set a different course. Despite the setback, a fresh surge over the $37,250 level was realized, although bearish activity was palpable around the $37,500 range, forming the most recent high.
Displaying a further sense of volatility, a dip below the $37,250 mark was registered, testing the 50% Fibonacci retracement level of the bullish run from the $35,891 low to the $37,500 peak.
Bitcoin is resuming its position in the trading space, currently idling near the $37,000 mark alongside the 100 hourly Simple moving average. Its immediate uphill battle lies with the $37,200 resistance. Amidst this scenario, a short-term declining channel presents a potential barrier with resistance near $37,250 in the BTC/USD hourly chart.
Looking toward the future, a pivotal resistance obstacle lies at $37,500. Traversing this barrier could spur Bitcoin’s price to accelerate further, potentially knocking at the $38,000 door and possibly cruising towards the $38,800 level.
The inverse, however, also remains a possibility. Should Bitcoin miss the mark and not surpass the $37,250 resistance threshold, it could prolong a downward trajectory. Its immediate support on the collapse is huddled near the $36,700 level, with substantial support solidified around the $36,500 region, marked by the 61.8% Fib retracement level of the rise from the $35,891 low to the $37,500 peak. Should Bitcoin venture below $36,500, the cryptocurrency could be at risk of a more pronounced descent, potentially dipping toward the critical support of $36,000.
Crunching the numbers and observing the technical indicators, the MACD is exhibiting signs of waning momentum in the bullish zone while the RSI for BTC/USD lurks beneath the 50 level.
The main support levels to look out for are $36,700 and $36,500. In contrast, the chief resistance runs are poised at $37,250, $37,500, and $38,000. As these market climates evolve, it makes it all the more exciting and crucial to monitor for both veteran and emerging investors alike.
