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Bitcoin Price Analysis: BTC Could Rally If It Breaks $39K

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  • Bitcoin price started trading in a range above the $34,000 zone against the US Dollar.
  • The price is now trading below the $37,000 zone and the 55 simple moving average (4-hours).
  • There is a major contracting triangle forming with resistance near $37,000 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair is likely to start a major increase if there is a clear break above $39,000 and $40,000.

Bitcoin price is attempting an upside break above $39,000 against the US Dollar. BTC must surpass $39,000 and $40,000 to start a strong upward move.

Bitcoin Price Analysis

Bitcoin price formed a base above the $32,000 and $33,200 levels. BTC started a decent upward move and it broke the $35,000 resistance zone. There was also a spike above the $38,000 level and the 55 simple moving average (4-hours).

However, the price failed to gain pace above the $40,000 level. The last swing high was formed near $40,900 and the price corrected lower. It traded as low as $33,182 and it is now consolidating.

There was a break above the $35,000 level. The price is still trading below the $37,000 zone and the 55 simple moving average (4-hours). It broke the 23.6% Fib retracement level of the recent decline from the $40,900 swing high to $33,182 low.

It seems like the price is struggling to clear the $37,000 zone. It is near the 50% Fib retracement level of the recent decline from the $40,900 swing high to $33,182 low.

The main resistance is near the $39,000 level. There is also a major contracting triangle forming with resistance near $37,000 on the 4-hours chart of the BTC/USD pair. If there is an upside break above the $39,000 resistance and the 55 simple moving average (4-hours), the price could even surpass $40,000. The next key resistance could be $45,000.

On the downside, the $35,000 level is a decent support. The main support is now forming near the $34,500 level and the triangle lower trend line. If there is a downside break below the $34,500 support, the price could resume its decline.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is clearly trading near $37,000 and the 55 simple moving average (4-hours). Overall, the price is likely to start a major increase if there is a clear break above $39,000 and $40,000.

Technical indicators

4 hours MACD – The MACD is slowly gaining momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI is now near the 50 level.

Key Support Levels – $35,000 and $34,500.

Key Resistance Levels – $37,000, $39,000 and $40,000.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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