Bitcoin rallied and climbed as high as 38,750. BTC/USD registered a 5.78% increase from 36,631.66 daily low to 38,750 today's high. The price action signaled that the downside is over and that buyers could take full control in the short term.
In the short term, it moves somehow sideways after failing to stabilize under the 37,000 psychological level. In the last 24 hours, BTC/USD was up by 2.63% and by 7.58% in the last 7-days. After its last sell-off, a rebound was somehow expected.
BTC/USD challenges 38,050 resistance
BTC/USD developed a triangle pattern on the H4 chart. Now, it challenges the 38,050 resistance and the triangle's resistance. Its failure to make a new lower low signaled exhausted sellers.
A valid upside breakout from the current triangle may signal further growth towards the 40,000 psychological level and up to the Descending Pitchfork's upper median line (uml). In the short term, it was trapped between 32,950.72 and 38,050. Staying near 38,050 indicates strong upside pressure and an imminent breakout.
BTC/USD forecast
As long as it stays above the triangle's downside line, BTC/USD could jump higher. Only staying below 38,050 and making a new lower low, dropping and closing below 36,631.66 will signal a potential drop towards 34,000 or even lower towards 32,950.72.
A new higher high, a bullish closure above 38,946 may activate more gains. Still, don't forget that only a valid breakout above the upper median line (uml) could really activate an upside reversal.
