Bitcoin Bounces Off $34K Support – What’s Next?

Bitcoin found support near $34,300 and began a rapid recovery against the US dollar. BTC has risen above $38,000, but it is still hovering around $40,000.

The Bitcoin price is gaining momentum

Bitcoin’s price has continued to fall below the $35,000 support level. BTC/USD, on the other hand, found support near the $34,300 and $34,500 levels. A low was formed near $34,333, and the price began an aggressive upward move.

The price has risen above the resistance levels of $36,500 and $37,000. The bulls were successful in pushing the price above the $38,000 level as well as the 100 hourly simple moving average. It even broke through the $39,500 resistance level, but there was no further upward movement.

The price has formed a high near $39,739 and is now consolidating gains. It was trading below the 23.6 percent Fib retracement level of the upward move from the swing low of $34,333 to the high of $39,739.

Bitcoin is now trading above the $38,000 mark and above the 100 hourly simple moving average. On the hourly chart of the BTC/USD pair, a key bullish trend line is forming with support near $37,600.

On the upside, an immediate resistance level is near $39,200. The next significant resistance is near $39,500. The main barrier is still around the $40,000 mark. A clear break above the $40,000 resistance level could propel the price even higher. It could even test $41,200 in this case.

Dips in BTC are limited?

If Bitcoin fails to break through the $39,500 resistance level, it may begin a downward trend. On the downside, there is immediate support near $38,000.

The trend line and the $37,800 level are the next major supports. If the price breaks below the trend line support, it may gain bearish momentum towards $36,000.