Bitcoin investors were met with excitement as the price of the leading cryptocurrency surged by over 15%, nearing the critical resistance level of $35,000. However, analysts are cautioning that a short-term correction may be in the cards before Bitcoin resumes its upward trajectory.
Bitcoin’s significant increase can be attributed to speculation surrounding the listing of a spot ETF by DTCC (Depository Trust & Clearing Corporation). This news sparked bullish momentum, propelling Bitcoin above the $32,000 resistance zone and towards the $35,000 resistance level.
After reaching a new multi-week high near $35,225, Bitcoin is currently consolidating its gains. It is trading comfortably above the 23.6% Fibonacci retracement level of the upward move from the $30,400 swing low to the $35,225 high. Moreover, Bitcoin is trading above $34,000 and the 100-hourly Simple Moving Average (SMA).
The Bitcoin hourly chart shows a bullish trend line forming with support near $32,500. This trend line aligns closely with the 61.8% Fibonacci retracement level mentioned earlier. These levels will serve as significant support in the event of a downside correction.
On the upside, immediate resistance is anticipated near the $34,800 level, followed by the key resistance level of $35,250. A clear breakthrough above this recent high could pave the way for further gains, leading Bitcoin towards the $36,200 resistance level. If bullish momentum continues, Bitcoin might even aim for the $37,000 and $38,000 levels in the coming days.
However, should Bitcoin fail to surpass the $34,800 resistance zone, a downside correction may be triggered. The first level of support on the downside is anticipated near $34,120, followed by the major support level around $32,800 and the trend line. A breach below the trend line support could potentially lead to a decline towards the $31,500 level in future sessions.
The hourly MACD (Moving Average Convergence Divergence) is currently gaining pace in the bullish zone, indicating further upside potential for Bitcoin. Additionally, the Relative Strength Index (RSI) for BTC/USD has climbed above the 50 level, suggesting increased buying pressure.
While Bitcoin investors celebrate its recent surge of over 15%, it is crucial to remain cautious. Analysts warn of a potential short-term correction before Bitcoin resumes its upward movement. Monitoring key support and resistance levels, as well as technical indicators, will be essential in assessing Bitcoin’s next move and the sustainability of its current price rally.
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