Key Takeaways:
- Bitcoin price started a strong increase above $30,000 and the 50-week simple moving average (blue).
- BTC/USD is following a crucial rising channel with resistance at $35,750 on the weekly chart.
- The price could correct lower toward $31,200 before it rallies again.
NEW DELHI (CoinChapter.com) — Bitcoin price is facing a key hurdle at $35,750. BTC/USD must stay above the $27,000 support to remain in a bullish zone.
Bitcoin Price Reaches Key Juncture
In the past few weeks, Bitcoin price saw a decent increase above the $25,000 resistance zone. The BTC/USD pair climbed above the $28,000 and $30,000 resistance levels.
There was also a close above the $30,000 pivot region and the 50-week simple moving average (blue). The bulls pushed the price above the 50% Fibonacci retracement level of the main decline from the $48,192 swing high to the $15,588 swing low (formed in November 2022).
The last two weekly candles suggest a strong bullish scenario. Bitcoin is now testing a crucial resistance at $35,750. It is the 61.8% Fib retracement level of the main decline from the $48,192 swing high to the $15,588 swing low.
More importantly, there is a crucial rising channel forming with resistance at $35,750 on the weekly chart. Therefore, BTC might face a strong selling interest between $35,750 and $35,800.
In the short term, Bitcoin might correct lower from the $35,750 zone.
Immediate support sits at $33,200. The first major uptrend support is near the $31,120 level (a multi-touch zone). The main support for the current bullish wave is near the channel trend line and the 50-week simple moving average (blue) at $27,000.
A weekly close below the channel support and $27,000 might start a nasty decline. In the stated scenario, there could be a drop toward the $22,000 support.
Upside Continuation in BTC Toward $40K?
Conversely, Bitcoin could remain stable above the $31,120 support zone, consolidate for some time, and start another increase. Immediate resistance is near $35,750. A successful daily close above the $35,750 resistance could initiate a steady increase.
In the stated case, the price could drift toward the $40,00 level. Any more gains might push the price toward the last swing high at $48,000 in the coming months.
Bitcoin is facing resistance at a key technical zone of $35,750. To continue higher, it must settle above $35,750. If not, there could be a pullback toward $31,120 or even $27,000 in the coming weeks.
