Bitcoin Setup – BTC/USD Bulls Take Control of the Trend

Bitcoin (BTC) prices have regained confidence after climbing above channel resistance. With increased geopolitical tensions, risk sentiment may continue to support price action.

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 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

Bitcoin Setup – BTC/USD Bulls Take Control of the Trend

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.

Source: https://www.dailyfx.com/forex/market_alert/2022/02/01/Bitcoin-Setup-BTCUSD-Bulls-Take-Control-of-the-Trend.html

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