Bitcoin price started a new increase after the huge rise of XRP. BTC is trading above $31,400 and could rise if there is a close above $32,000.
- Bitcoin is moving higher above the $31,000 and $31,400 resistance levels.
- The price is trading above $31,000 and the 100 hourly simple moving average.
- There was a break above a major contracting triangle with resistance near $30,700 on the hourly chart of BTC/USD (data feed from Kraken).
- The pair could gain upward momentum if there is a close above $32,000.
Bitcoin price starts a new increase
Bitcoin price managed to clear the $30,500 resistance area. BTC has started a new rally after a court ruled in favor of Ripple, stating that XRP is not a guarantee. There was a break above the $30,650 resistance.
Besides, there was a break above a major contracting triangle with resistance near $30,700 on the hourly chart of the BTC/USD pair. The pair rose above the $31,400 resistance area. A top was formed near $31,790 and the price is now consolidating gains.
It is trading near the 23.6% Fibonacci retracement level of the recent increase from the swing low $30,217 to $31,790. Bitcoin is now trading above $31,000 and the 100 hourly simple moving average.
source: BTCUSD on TradingView.com
The immediate resistance is near the $31,600 level. The first major resistance is near $31,800, above which the price could gain bullish momentum. In the mentioned case, Bitcoin may rise towards the $32,000 resistance. The next major resistance is near the $32,500 level. Any further gains could open the door for a move towards the $33,200 resistance area.
Are Dips Supported by Bitcoin?
If Bitcoin fails to clear the $31,800 resistance, it might start a downside correction. There is immediate support on the downside near the $31,200 level.
The next major support is near the $31,000 level or the 50% Fibonacci retracement level of the recent increase from the $30,217 swing low to $31,790 high, which could be a drop towards the $30,800 support area. Any further losses could send the price towards the $30,550 level in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The relative strength index for BTC/USD is now above the 50 level.
Major Support Levels – $31,200, followed by $31,000.
Key resistance levels – $31,650, $31,800 and $32,000.