Bitcoin’s price is in a consolidation phase, indicating a possible surge towards the $40,000 mark

Bitcoin's price is in a consolidation

Last Updated on 3 weeks by cryptoevent

Bitcoin’s value is currently undergoing a corrective phase, retracting from the $38,000 region. Presently, BTC is in a consolidation phase, eyeing potential upward movements beyond the $37,250 resistance level.

Here’s a breakdown of the recent market developments:

  • Bitcoin initiated a correction from the $38,000 resistance level.
  • The current trading price hovers around $37,000, accompanied by the presence of the 100-hourly Simple Moving Average.
  • A short-term declining channel is taking shape, with resistance around $37,250 on the BTC/USD hourly chart sourced from Kraken.
  • Despite a recent dip below the $37,250 mark, the cryptocurrency is consolidating its gains and may initiate a new upswing towards $38,000.

Bitcoin’s price trajectory indicates an ongoing uptrend:

  • Bitcoin recently surged above the $36,800 resistance, gaining momentum to surpass the $37,000 resistance zone and enter a positive trend.
  • Although it briefly peaked at $38,000, a corrective downturn followed, reaching $35,850.
  • A subsequent recovery saw a renewed ascent above $37,250, encountering resistance at $37,500, forming a high around that level.
  • Currently, Bitcoin is consolidating its recent gains, trading close to $37,000 and the 100-hourly Simple Moving Average.

Potential scenarios for Bitcoin’s movement:

  • Immediate resistance lies around $37,200, with a short-term declining channel forming resistance at $37,250 on the hourly BTC/USD chart.
  • A breakthrough past $37,500 could lead to further acceleration, testing the $38,000 level. Subsequent gains might propel BTC towards $38,800.

Considering downsides:

  • Failure to breach the $37,250 resistance zone could result in downward movement.
  • Initial support exists around $36,700, followed by a more significant support zone near $36,500 or the 61.8% Fib retracement level.
  • A move below $36,500 raises the risk of further declines, potentially reaching the key support level at $36,000 in the near term.

Technical indicators:

  • Hourly MACD shows a slowdown in bullish momentum.
  • Hourly RSI for BTC/USD is now below the 50 level.

Key support and resistance levels:

  • Major Support Levels: $36,700, followed by $36,500.
  • Major Resistance Levels: $37,250, $37,500, and $38,000.