Bitcoin Price Regains Strength As The Bulls Aim For $40K

20 November 2023

Bitcoin price started a fresh increase above the $37,000 resistance zone. BTC could accelerate higher once there is a clear move above the $37,350 resistance.

Bitcoin started a fresh increase from the $35,500 support zone.
The price is trading above $36,700 and the 100 hourly Simple moving average.
There is a key bullish trend line forming with support near $36,720 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to move up toward $40,000 if it clears $37,350 and $38,000.

Bitcoin Price Restarts Increase

Bitcoin price found support near the $35,500 zone after a steady decline. BTC bulls were active above the $35,500 level and were able to start a fresh increase.

There was a move above the $36,500 and $37,000 resistance levels. The price climbed above the 50% Fib retracement level of the downward wave from the $37,950 swing high to the $35,518 low. The price even spiked above $37,200.

Bitcoin is now trading above $36,700 and the 100 hourly Simple moving average. There is also a key bullish trend line forming with support near $36,720 on the hourly chart of the BTC/USD pair.

On the upside, immediate resistance is near the $37,350 level. It is near the 76.4% Fib retracement level of the downward wave from the $37,950 swing high to the $35,518 low. A clear move above the $37,350 resistance might send the price toward the $37,800 level.

Source: BTCUSD on TradingView.com

The next key resistance could be near $38,000. A close above the $38,000 resistance could start a strong increase. The first major resistance is near $39,200, above which the price might accelerate further higher. In the stated case, it could test the $40,000 level. Any more gains might send BTC toward the $42,000 level.

Another Rejection In BTC?

If Bitcoin fails to rise above the $37,350 resistance zone, it could start another decline. Immediate support on the downside is near the $37,000 level.

The next major support is $36,700 and the trend line. If there is a move below $36,700, there is a risk of more downsides. In the stated case, the price could drop toward the $35,950 support in the near term. The next key support or target could be $35,500.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $37,000, followed by $36,700.

Major Resistance Levels – $37,350, $37,800, and $38,000.

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