Bitcoin Setup – BTC/USD Bulls Take Control of the Trend
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Bitcoin, USD Talking Points
- Bitcoin prices climb above the key psychological level of $38,000
- BTC/USD benefits from the regulatory environment
- USD weakness supports cryptocurrency
Bitcoin Prices Edge Higher
Bitcoin prices have recently managed to break above the $38,000 handle after bulls regained confidence above key technical levels.
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In the wake of the November all-time high where Bitcoin demonstrated characteristics akin to gold, acting as a hedge against inflation, it appears that risk aversion has shifted, allowing BTC/USD to climb higher.
Bitcoin (BTC/USD) Technical Analysis
At the time of writing, BTC/USD is currently trading above channel resistance, breaking the psychological level of $38,000. After breaking the 50% Fibonacci retracement level of the 2020 – 2021 move at $36,264, bulls have managed to recover a portion of previous losses, driving price action higher.
As Bitcoin aims to retest the $40,000 handle, the next level of resistance rests at the 61.8% retracement of the above-mentioned move with the next level of support lying at $36,000 with the RSI (relative strength index) now falling into range.
Bitcoin (BTC/USD) Daily Chart
Source: TradingView, Chart by Tammy Da Costa
--- Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.