In a remarkable turn of events, Bitcoin’s price has surged by more than 15%, bringing it within touching distance of the $35,000 resistance level. However, analysts suggest a short-term correction could be on the horizon before the cryptocurrency resumes its upward trajectory.
The recent bullish momentum was ignited by speculation surrounding the listing of a spot ETF by DTCC. This development pushed Bitcoin past the $32,000 resistance zone, marking a significant breakthrough.
The cryptocurrency made a substantial push toward the $35,000 resistance, ultimately reaching a new multi-week high of around $35,225. Presently, it’s consolidating these gains and remains comfortably above the 23.6% Fibonacci retracement level, calculated from the swing low of $30,400 to the recent high of $35,225.
Notably, Bitcoin is currently trading above the $34,000 mark and has maintained its position above the 100-hourly Simple Moving Average. Furthermore, an encouraging sign is the emergence of a bullish trend line, establishing a support level of around $32,500, as observed on the BTC/USD hourly chart. This trend line closely aligns with the 61.8% Fibonacci retracement level, reflecting the surge from the $30,400 swing low to the $35,225 high.
In terms of immediate prospects, the cryptocurrency faces resistance near the $34,800 level, with the $35,250 mark serving as the next pivotal point. Should the price convincingly breach the recent high, it may aim for the $36,200 resistance, with the subsequent major resistance at $37,000. Further gains could potentially propel Bitcoin toward the $38,000 threshold in the days to come.
However, a bearish scenario cannot be ruled out. If Bitcoin struggles to ascend beyond the $34,800 resistance zone, it may undergo a corrective phase. Immediate support rests near the $34,120 level, and subsequent significant support is situated around the $32,800 mark, closely aligned with the aforementioned trend line. A more substantial drop below the trend line support could lead the price toward the $31,500 level in the upcoming sessions.