Thursday, January 7, 2021

TA: Bitcoin Price Sets New ATH, Why BTC Bulls Could Aim $40K



Bitcoin price started another rally and broke the $35,500 resistance against the US Dollar. BTC traded to a new all-time high near $37,400 before starting a consolidation.


  • Bitcoin is up over 10% and it broke the $35,500 and $36,500 resistance levels.

  • The price traded to a new all-time high close to $37,400 it is still well above the 100 hourly simple moving average.

  • There is a major bullish trend line forming with support near $35,880 on the hourly chart of the BTC/USD pair (data feed from Kraken).

  • The pair is likely to continue higher towards $38,500 and $39,800 if the current trend remains intact.

Bitcoin Price Rallies 10%


After a minor decline, bitcoin price regained strength above the $34,000 level. BTC started another strong increase and it broke many hurdles near the $35,500 and $36,500 resistance levels.


The price even spiked above the $37,000 level and settled well above the 100 hourly simple moving average. It traded to a new all-time high close to $37,400 and it is currently consolidating gains. An initial support on the downside is near the $36,650 level.


The 23.6% Fib retracement level of the recent surge from the $34,378 swing low to $37,394 high is near the $36,682 level. There is also a major bullish trend line forming with support near $35,880 on the hourly chart of the BTC/USD pair.


Bitcoin Price


Source: BTCUSD on TradingView.com

The trend line is close to the 50% Fib retracement level of the recent surge from the $34,378 swing low to $37,394 high. On the upside, the $37,250 and $37,400 levels are initial hurdles for the bulls.


A clear break above the $37,400 level will most likely open the doors for a larger increase. In the stated case, the price could even jump towards the $38,500 and $39,800 levels in the coming sessions.


Dips Supported in BTC?


If bitcoin fails to clear the $37,250 and $37,400 levels, it could start a short-term downside correction. An initial support on the downside is near the $36,650 and $36,500 levels.


The main support is now forming near the $35,800 level and the bullish trend line. Any more losses may possibly start a major downside correction towards the $33,000 level or the 100 hourly SMA.


Technical indicators:


Hourly MACD – The MACD is losing momentum in the bullish zone.


Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 60 level.


Major Support Levels – $36,600, followed by $35,800.


Major Resistance Levels – $37,400, $38,500 and $39,800.




Source newsbtc.com

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