Bitcoin Price Breaks $36K – Is This Start of A Fresh Rally?

Bitcoin price finally cleared the $36,000 resistance. BTC is showing positive signs and might continue to rise toward the $37,500 resistance.

• Bitcoin gained pace for a move above the $36,000 resistance zone.
• The price is trading above $36,000 and the 100 hourly Simple moving average.
• There is a key bullish trend line forming with support near $35,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is consolidating gains and might continue to rise toward $37,500.

Bitcoin Price Spikes Higher

Bitcoin price remained well-bid above the $35,000 support zone. BTC formed a base above the $35,500 zone and finally started a decent increase. It broke the key hurdle at $36,000 to start a fresh rally.

There was a spike toward the $36,500 level. A high is formed near $36,525 and the price is now consolidating gains. It is trading above the 23.6% Fib retracement level of the upward move from the $35,100 swing low to the $36,525 high.

Bitcoin is also trading above $36,000 and the 100 hourly Simple moving average. Besides, there is a key bullish trend line forming with support near $35,800 on the hourly chart of the BTC/USD pair. The trend line is near the 50% Fib retracement level of the upward move from the $35,100 swing low to the $36,525 high.

Source: BTCUSD on TradingView.com

On the upside, immediate resistance is near the $36,500 level. The next key resistance could be near $37,000, above which the price might accelerate further higher. In the stated case, it could test the $37,500 level. Any more gains might send BTC toward the $38,000 level.

Are Dips Limited In BTC?

If Bitcoin fails to rise above the $36,500 resistance zone, it could start a downside correction. Immediate support on the downside is near the $36,150 level.

The next major support is near the $35,800 zone or the trend line. If there is a move below $35,800, there is a risk of more downsides. In the stated case, the price could decline toward the key support at $35,000 in the near term.

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 above the 50 level.

Major Support Levels – $36,150, followed by $35,800.

Major Resistance Levels – $36,500, $37,000, and $37,500.

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