TA: Bitcoin Gains Traction, Why BTC Could Target Fresh High Above $35K

Bitcoin

Bitcoin price regained strength for a fresh recovery and it broke $33,500 against the US Dollar. BTC is likely to continue higher above $35,000 in the near term.

Bitcoin Price Turns Green

Bitcoin declined again, but the bulls were active above the main $30,000 support zone. BTC formed a base above the $30,000 zone to start a fresh increase. BTC broke the $32,500 resistance to move into a positive zone.

There was a clear break above the 50% Fib retracement level of the downward move from the $35,460 swing high to $30,200 zone. It even cleared the $33,500 resistance zone and settled nicely above the 100 hourly simple moving average.

Moreover, there was a break above a key bearish trend line with resistance near $33,300 on the hourly chart of the BTC/USD pair. The pair even climbed above the 76.4% Fib retracement level of the downward move from the $35,460 swing high to $30,200 zone.

Source: BTCUSD on TradingView.com

The current price action is positive and it seems like bitcoin could continue to rise towards the $35,000 resistance. The next key resistance is near $35,500, above which the bulls are likely to aim a rally towards $38,000. The main resistance is still near the $40,000 zone.

Dips Limited in BTC?

If bitcoin fails to clear the $35,000 resistance or the $35,000 resistance, it could start a downside correction. An immediate support on the downside is near the $34,000 level.

The next major support is near the $33,500 level. The main support is now forming near the $33,000 level and the 100 hourly SMA. A downside break below the 100 hourly SMA could open the doors for a fresh drop towards the $30,000 zone in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

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

Major Support Levels – $33,500, followed by $33,000.

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

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