Key Takeaways:
- Bitcoin price is gaining pace above the $24,000 resistance zone.
- BTC/USD is trading inside a major contracting triangle with resistance near $25,000 on the 4-hours chart.
- The price could start another strong rally if there is a clear move above the $25,000 resistance.
Bitcoin price is showing positive signs above $24,000. BTC/USD might soon attempt another increase if it clears the $25,000 resistance zone.
Bitcoin Price Eyes Upside Break
After forming a decent base above $21,500, the bitcoin price increased rapidly. The BTC/USD pair cleared the $22,500 and $23,200 resistance levels to start an upward move.
There was a clear move above the $24,000 resistance zone and the 50 simple moving average (4 hours, blue). It also sparked positive moves in Ethereum, Cardano, Solana, and Ripple. The upward move was such that the price spiked above the $25,000 resistance zone.
Recently, there was a downside correction below the $24,500 level. The price even spiked below $24,000, but losses were limited. A low was formed near $23,862 before the price started a new increase.
There was a steady increase above the $24,500 resistance. The price surpassed the 61.8% Fib retracement of the recent decline from the $25,209 swing high to the $23,862 low.
On the upside, immediate resistance is near the $25,000 level. A major contracting triangle is forming with resistance near $25,000 on the 4-hours chart. It coincides with the 50% Fib retracement of the recent decline from the $25,209 swing high to the $23,862 low.
A close above the $25,000 level might start another strong increase. The next major resistance might be near the $26,200 level. Any more gains might send the price toward the $27,500 resistance zone in the coming days.
Dips Supported in BTC?
On the downside, the first major support is near the $24,500 level. The next key support sits near the $24,200 level and the triangle lower trend line. A clear move below the $24,200 support could spark a bearish move.
The next major support is near the $23,850 zone, below which there is a risk of a move toward the $23,200 support zone.
Overall, Bitcoin price is eyeing a new rally above the $25,000 resistance zone. If BTC clears the $25,000 barrier, it could rally toward $26,200 or $27,000. Conversely, the price might correct lower and decline toward $23,850 in the coming sessions.
