Wednesday, January 6, 2021

TA: Bitcoin Revisits $34K, Why BTC Could Surge To New ATH Above $35K



Bitcoin price started a fresh increase above the $33,200 resistance against the US Dollar. BTC is likely eyeing more upsides above the $34,500 and $35,000 resistance levels.


  • Bitcoin is up over 5% and it broke the $33,200 and $33,500 resistance levels.

  • The price is trading nicely near $34,000 and it is well above the 100 hourly simple moving average.

  • There was a break above a major bearish trend line with resistance near $32,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).

  • The pair is likely to accelerate higher above the $34,500 and $35,000 resistance levels.

Bitcoin Price is Gaining Momentum


Yesterday, we discussed the chances of a fresh increase in bitcoin price above $33,200 and $33,500. BTC did gain bullish momentum and it was able to clear the $33,200 and $33,500 resistance levels.


There was also a break above a major bearish trend line with resistance near $32,400 on the hourly chart of the BTC/USD pair. The pair gained pace and it even broke the $34,000 resistance zone. It tested the $34,500 resistance and settled above the 100 hourly simple moving average.


A high is formed near $34,536 and the price is currently consolidating gains. It tested the $33,800 support zone, and the 23.6% Fib retracement level of the recent wave from the $31,196 swing low to $34,536 high.


Bitcoin Price


Source: BTCUSD on TradingView.com

If there are more downsides, the price could test the $32,800 support. It is close to the 50% Fib retracement level of the recent wave from the $31,196 swing low to $34,536 high. On the upside, the price is facing hurdles near the $34,500 level.


A clear break and close above the $34,500 level may possibly open the doors for a surge above the $35,000 level. In the stated case, the next major stop for the bulls could be near $36,500 or $37,200.


Dips Supported in BTC?


If bitcoin fails to clear the $34,500 and $35,000 levels, it could start a fresh downward move. An initial support on the downside is near the $33,000 and $32,800 levels.


The main support is now forming near the $32,400 level and the 100 hourly simple moving average. A close below the 100 hourly SMA could start a fresh decline towards the $30,000 support zone in the near term.


Technical indicators:


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


Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 55 level.


Major Support Levels – $33,800, followed by $32,800.


Major Resistance Levels – $34,500, $35,000 and $36,500.




Source newsbtc.com

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