Bitcoin price started a fresh increase above the $37,000 resistance zone after finding support near the $35,500 level. The bulls were able to push the price above the 50% Fibonacci retracement level of the downward wave from the $37,950 swing high to the $35,518 low. The price even spiked above $37,200 and is now trading above the 100 hourly simple moving average.
There is also a key bullish trend line forming with support near $36,720 on the hourly chart of the BTC/USD pair. This indicates that the buyers are in control and are aiming for more gains in the near term.
Bitcoin faces a major hurdle near $37,350
On the upside, the immediate resistance for bitcoin is near the $37,350 level. It is close to the 76.4% Fibonacci retracement level of the downward wave from the $37,950 swing high to the $35,518 low. A clear break above the $37,350 resistance could open the doors for a further increase towards the $37,800 level.
The next key resistance could be near $38,000, which is also a psychological barrier for the bulls. A close above the $38,000 level could trigger a strong rally towards the $39,200 level, which is the 1.618 Fibonacci extension level of the downward wave from the $37,950 swing high to the $35,518 low.
If the bulls manage to clear the $39,200 level, they could aim for the $40,000 level, which is a major milestone for the cryptocurrency. Any further gains could send the price towards the $42,000 level, which is the all-time high for bitcoin.
Bitcoin could face another rejection if it fails to clear $37,350
However, if bitcoin fails to rise above the $37,350 resistance zone, it could face another rejection and start a fresh decline. The first support on the downside is near the $37,000 level, which is also the 100 hourly simple moving average.
The next major support is near the $36,700 level and the trend line. If there is a downside break below the trend line, there is a risk of more losses in the near term. In that case, the price could drop towards the $35,950 level, which is the 50% Fibonacci retracement level of the upward wave from the $35,518 low to the $37,200 high.
The next key support or target for the bears could be near the $35,500 level, which is the recent swing low and a crucial zone for the bulls. If the price fails to stay above the $35,500 level, it could enter a bearish zone and slide towards the $34,000 level or lower.
Technical indicators suggest a bullish bias for bitcoin
The technical indicators for bitcoin suggest that the bulls have the upper hand and are likely to continue pushing the price higher. The hourly MACD is in the bullish zone, but it is losing momentum. The hourly RSI is above the 50 level, indicating a positive sentiment.
The major support levels for bitcoin are $37,000, followed by $36,700. The major resistance levels are $37,350, $37,800, and $38,000.
Bitcoin is showing signs of strength and could resume its uptrend if it clears the $37,350 resistance. The bulls are aiming for the $40,000 level, which is a key level for the cryptocurrency. However, if the price fails to clear the $37,350 level, it could face another rejection and start a fresh decline towards the $35,500 level or lower.
