NEW DELHI (CoinChapter.com) — Bitcoin price is gaining bullish momentum above $36,000. BTC/USD completed a consolidation and now eyeing a move toward the $40,000 region.
Bitcoin Price Starts Fresh Increase
However, losses were limited below $34,000. A low was formed near $34,154 before the price started a fresh increase. The bulls struggled to clear the $36,000 resistance on a couple of occasions but they finally succeeded.
BTC completed a bullish pattern and surpassed a rising channel with resistance at $36,650 on the 4-hour chart. The price settled above the channel resistance and now trades well above the 50 simple moving average (blue, 4-hour).
It is testing the 1.618 Fib extension level of the downside correction from the $35,975 swing high to the $34,154 low. The current price action suggests Bitcoin is setting up for a fresh rally. If the recent breakout stands valid, it could surge 5% and might drag Ethereum and other altcoins higher.
The first major resistance is near the 2.618 Fib extension level of the downside correction from the $35,975 swing high to the $34,154 low at $38,921. The main target for the bulls could be $40,000 in the coming sessions. Any more gains could set the tone for a move toward $42,000.
Consolidation Before Upside Continuation?
Conversely, Bitcoin price might struggle to continue higher above $37,200. There might be a couple of swing moves or range moves. In the stated case, the price might resume its rally if it stays above the channel support.
If not, there might be a deeper correction toward the $35,950 support zone (a multi-touch zone). The main support is now forming near the $35,000 level and the 50 simple moving average (blue, 4-hour). A successful daily close below the $35,000 support might dent the bullish trend in the short term and the price might test the $33,450 support.
Overall, Bitcoin price is signaling a clear bullish breakout above $36,000. If the bulls remain in action, BTC could drift toward the $40,000 resistance. Conversely, it might consolidate and then attempt a fresh increase if it stays above $35,000.