- Bitcoin price analysis highlights BTC bull’s unanimous action to defend $33,000.
- Failure to break down past $33,000 ensured Bitcoin surges close to $38,000.
- Critical technical indicators gradually improve, validating Bitcoin’s bull run.
During today’s early morning trading session, Bitcoin soared to hit an intraday high of $38,250. The milestone comes when the global banking supervisor, Basel Committee, proposed new measures for financial institutions, indicating it is ready to take Bitcoin seriously.
Bitcoin Price Analysis: General price overview
Earlier this week, the number one crypto asset, Bitcoin, was trading slightly above the $33,000 support level. Due to the price plunge witnessed during the weekend, more sidelined buyers were allowed to invest in the crypto coin, supporting its upsurge campaign that eyes the $40,000 mark. Bitcoin’s latest surge has seen the crypto asset appreciate by about 14 percent in the last 24-hours, collectively sending the entire market to the green zone.
As aforementioned above, the Swiss-based Basel Committee recently issued new proposals to regulate banks globally. According to the proposal, banks that offer Bitcoin investment programs to their customers will be required to set aside insurance money to cover them from losses in full. Due to Bitcoin’s high volatility, the Basel Committee proposes the coverage should be kept at around 1,250 percent. Although the proposal appears extreme, the move shows the banking industry is now ready for Bitcoin and other cryptocurrencies.
Bitcoin price movement in the past 24 hours
The last few days have seen Bitcoin register significant price rebounds. Going by the recent price surge, crypto pundits argue that the short-term down surge from $64,800 might be complete. This is due to the failure of the king crypto to break down past the $31,000 support level. At the time of writing, Bitcoin is exchanging hands at around $37,400 but trading with an immediate focus of $39,500. Interestingly, the immediate focus happens to be Bitcoin’s immediate resistance level.
If the crypto coin breaks above this level, Bitcoin would be free to rally towards the 38.2 percent Fibo retracement region that ranges between $43,970 to $64,830. If all things remain constant, there is a high likelihood that Bitcoin could surge towards the 61.8 percent Fibo retracement level at around $51,930.
Bitcoin 4-hour chart
According to Bitcoin’s 4-hour chart, critical technical indicators validate the ongoing bullish momentum. For instance, the Moving Average Convergence Divergence recently turned bullish, authenticating Bitcoin’s recent surge from $33,000 to $38,000. At present, the MACD line is teetering above the signal line, indicating Bitcoin is in for further upward price movements. It is worth noting that the more Bitcoin remains in the positive zone, the more investors will be encouraged to buy the coin, thereby extending the coin’s bullish outlook.
As for the SuperTrend, the technical indicator has also turned bullish by flashing buy signals. This signals a remarkable turnaround after a season of unfavorable price movements. On the other hand, the Relative Strength Index is yet to enter the positive price region. Currently hovering at level 46, the technical indicator shows the presence of bears is still evident.
At present, Bitcoin bulls have to ensure the 50 and 100 Simple Moving Average are protected to avert another breakdown towards $33,000 and $31,000. The recent El Salvador adoption news also appears to be favoring Bitcoin. Although it is still early, the number one crypto asset is scheduled to gain from this milestone.