NEW DELHI (CoinChapter.com) — Bitcoin price is consolidating below a major hurdle at $38,000. BTC/USD could accelerate higher once it clears $38,000 and $40,000.
Bitcoin Price Signals Uptrend
After forming a base in August 2023, Bitcoin price started a strong increase above the $28,000 resistance zone. The BTC/USD pair climbed over 25% and broke many hurdles near the $31,500 resistance zone.
There were back-to-back bullish weekly candles and a strong close above the $35,000 region. The price settled above the 50-week simple moving average (blue) and the 23.6% Fib retracement level of the main decline from the $68,958 swing high to the $15,487 low.
The price is now testing an important rising channel with resistance at $38,000 on the weekly chart. The current price action suggests that Bitcoin is struggling to clear the channel resistance.
There were two rejections noted near the $38,000 level in the last few days. Therefore, there are chances of a short-term downside correction. Immediate support sits at $35,000. The first major uptrend support is near the $31,500 level (a multi-touch zone).
The main support for the current bullish wave is near the channel trend line at $30,000, where Bitcoin bulls might take a strong stand and present a golden buying opportunity. The key trend change support sits at the 50-week simple moving average (blue) at $26,500.
A weekly close below the $26,500 support could start a nasty decline. In the stated scenario, there could be a drop toward the $22,500 support.
Uptrend Continuation In BTC
Conversely, Bitcoin could remain stable above the $35,000 support zone, consolidate for some time, and then attempt another rally. Immediate resistance is near the channel trend line at $38,000. A successful daily close above the channel resistance could spark an increase toward $40,000.
In the stated case, BTC price could rally over 25% toward the $48,000 level or the 61.8% Fib retracement level of the main decline from the $68,958 swing high to the $15,487 low. Any more gains might even push the price toward the $50,000 level in the coming months.
Fundamentally, many experts believe that Bitcoin Spot ETF could be approved in January 2024. Recently, the SEC postponed consideration of Grayscale’s application for ETH ETF futures and Hashdex’s application for spot BTC ETF until January 1, 2024.
Overall, Bitcoin is trading near a key juncture at $38,000. There might be a short-term pullback toward $32,000, but the bulls could take a strong stand. To continue higher, BTC must settle above $38,000 and then reclaim $40,000.
