Here’s Why BTC Turned Attractive On Dips

Bitcoin price gained bullish momentum above the $38,000 resistance against the US Dollar. BTC is now consolidating gains and it is likely to remain supported near $37,000.

Bitcoin started a steady increase above the $37,000 and $38,000 resistance levels.
The price is now trading above the $37,000 zone and the 100 hourly simple moving average.
There is a short-term contracting triangle forming with resistance near $39,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct lower, but the bulls are likely to protect the $37,000 zone and the 100 hourly SMA.

Bitcoin Price Turns Green
Bitcoin remained well bid above the $35,000 level and it started a fresh increase. BTC broke the key $37,000 resistance zone and the 100 hourly simple moving average to move into a positive zone.
The price even broke the $38,000 level and extended its upward move. The price even tested the $40,000 resistance zone and a high is formed near $40,021. It is now consolidating gains below the $40,000 and $39,500 levels.
There is also a short-term contracting triangle forming with resistance near $39,500 on the hourly chart of the BTC/USD pair. An initial support on the downside is near the $38,000 level. The 23.6% Fib retracement level of the recent wave from the $31,000 swing low to $40,000 zone is also near the $38,000 area.

Source: BTCUSD on TradingView.com
To start a fresh increase, bitcoin price must clear the $39,500 and $40,000 resistance levels. The next major resistance is near the $41,500 level. Any more gains could open the doors for a larger recovery towards the $45,000 level. An intermediate resistance is near the $43,200 level.
Dips Limited in BTC?
If bitcoin fails to clear the $40,000 resistance, there is a risk of a downside correction. An initial support on the downside is near the $38,000 level.
The first major support is now forming near the $37,000 zone and the 100 hourly SMA. A downside break below the $37,000 support could lead the price towards the $35,550 support zone. It is near the 50% Fib retracement level of the recent wave from the $31,000 swing low to $40,000 zone.
Technical indicators:
Hourly MACD – The MACD is slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is moving lower towards the 50 level.
Major Support Levels – $38,000, followed by $37,000.
Major Resistance Levels – $39,500, $40,000 and $41,500.

Shakira

I’m a professional writer specializing in the field of cryptocurrencies. My work has been published in numerous online and offline publications which has made me one of the leading authorities in this industry. In addition to my work as an author, I’m also a highly sought-after speaker on the topic of cryptocurrency investing. I have given talks at some of the world’s most prestigious financial institutions, and my advice is regularly featured in the media.