Bitcoin Recovers Sharply, Why BTC Could Rally Further Above $38K

June 12, 2021

Bitcoin price started a strong increase above the $35,000 resistance against the US Dollar. BTC is currently showing a lot of positive signs and it could even surge above $38,000.

Bitcoin started a steady increase above the $35,000 and $36,000 resistance levels.
The price is currently well above $36,000 and the 100 hourly simple moving average.
There was a break above a major bearish trend line with resistance near $35,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to accelerate higher if it clears the $38,000 resistance zone in the near term.

Bitcoin Price Turns Green
Bitcoin found a strong buying interest near the $31,000 zone and it started a steady increase. BTC broke many important hurdles near $35,000 to move into a positive zone.
There was also a break above a major bearish trend line with resistance near $35,000 on the hourly chart of the BTC/USD pair. The pair even settled above the $36,000 resistance and the 100 hourly simple moving average.
Bitcoin climbed above the $37,000 level and traded as high as $37,484. It is now consolidating gains above the $37,000 level. An immediate support is near the $36,500 level. The first key support is near the $36,000 zone. It is close to the 23.6% Fib retracement level of the upward move from the $31,050 swing low to $37,484 high.

Source: BTCUSD on TradingView.com
The next major support is near the $35,000 level and the 100 hourly simple moving average. The 50% Fib retracement level of the upward move from the $31,050 swing low to $37,484 high is the next support near the $34,250 level.
On the upside, the first major resistance is near the $37,500 level. The main resistance is near the $38,000 zone, above which the price could rally towards the $40,000 level in the near term.
Dips Supported in BTC?
If bitcoin fails to clear the $38,000 resistance, it could start a downside correction. An initial support on the downside is near the $36,500 level.
The first major support is near the $36,000 level. The main support is now forming near the $35,000 level and the 100 hourly SMA. If the price fails to stay above $35,000, the price could dive to $32,000.
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 50 level.
Major Support Levels – $36,000, followed by $35,000.
Major Resistance Levels – $37,500, $38,000 and $40,000.