TA: Bitcoin Starts Recovery, Why $38K Is The Key For Reversal
25 January 2022 - 02:18PM
NEWSBTC
Bitcoin extended decline below $34,000 against the US Dollar. BTC
is recovering, but it must clear $38,000 for a steady upward move.
Bitcoin remained in a bearish zone below the $38,000 and $36,500
support levels. The price is now trading near $36,500 and the 100
hourly simple moving average. There was a break above a major
bearish trend line with resistance near $35,450 on the hourly chart
of the BTC/USD pair (data feed from Kraken). The pair could start a
major increase if there is a clear move above the $38,000
resistance. Bitcoin Price Eyes Recovery Bitcoin price extended
decline below the $35,000 and $34,000 support levels. BTC even
spiked below the $33,000 level. A low was formed near $32,940 and
the price recently started a recovery wave. There was a break above
the $35,000 and $35,500 resistance levels. The bulls pushed the
price above the 23.6% Fib retracement level of the recent decline
from the $43,490 swing high to $32,940 low. Besides, there was a
break above a major bearish trend line with resistance near $35,450
on the hourly chart of the BTC/USD pair. The pair even spiked above
the $37,000 level. Bitcoin is now trading near $36,500 and the 100
hourly simple moving average. On the upside, an initial resistance
is near the $37,000 level. Source: BTCUSD on TradingView.com The
first major resistance is near the $38,000 zone. It is near the 50%
Fib retracement level of the recent decline from the $43,490 swing
high to $32,940 low. An upside break above the $38,000 resistance
could start a steady recovery wave towards $40,000. The next key
resistance is near the $41,200 level, above which the bulls might
aim a test of $42,000. Fresh Decline in BTC? If bitcoin fails to
start a fresh increase above $38,000, it could start another
decline. An immediate support on the downside is near the $36,000
zone. The first major support is seen near the $35,400 zone. A
downside break below the $35,400 support zone may perhaps spark
another drop. The next major support is near $34,000, below which
the price could revisit the recent low. Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now
above the 50 level. Major Support Levels – $35,400, followed by
$34,000. Major Resistance Levels – $37,000, $38,000 and $38,200.
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