Bitcoin (BTC) is in positive territory during the Wednesday session, the lead crypto has performed very well in the prolonged battle against selling pressure, as the rebound from lows extend. BTC started a decent increase in the prior day from the $31,000 support zone against the US Dollar. The BTC/USD pair climbed above $35,000 to move into a positive zone as bulls shrug off weak selling pressure. At the time of this post, BTC was exchanging at $36,108 up from $32,408 intraday lows. Bitcoin upside thrust seems to have responded to El Salvador’s Volcanic (Thermal) Energy meeting Elon Musk’s Bitcoin FUD on high energy requirement for mining BTC. The congress of El Salvador voted to declare Bitcoin legal tender, making it the first country to do so. For a long time, the energy requirement for Bitcoin mining has been a popular issue. Crypto-mining could be an intriguing business for geothermal operators, as well as for crypto-mining activities, given the baseload capacity offered by geothermal.
Key Levels
Resistance Levels: $43,000, $40,000, $37,500
Support Levels: $33,500, $30,000, $27,000
BTC/USD Daily Chart: Ranging
BTC/USD Daily Chart
BTC maintained its advances on Wednesday, fueled by strong fundamentals and a tested support level from the previous day’s low of $31,000, keeping expectations alive for a break of the $37,500 next region of contention. After surpassing the difficult $33,500 lower boundary range of January 2021, the BTC/USD is seeking refuge above the $35,000 critical level near convergence zones.
Even if the RSI is safely above extreme low levels, it is still below the midline 50. It dissuades selling pressure, and bears cannot rule out the possibility of a rebound, as the indicator appears to have struck a bottom just above its 20 oversold levels, with price stabilizing near $37,000. However, there are multiple hurdles on the upside, such as $37,500, that could erase any upward correction.
BTC/USD 4-Hour Chart: Ranging
BTC/USD 4-Hour Chart
Following a recent severe price drop towards the $31,000 support region, Bitcoin has returned higher on Wednesday. According to the four-hour time frame, if bulls can get the price over $37,500, a further rally towards $40,000 is possible. If the price does not stay above $37,500, a drop to $33,500 is possible.
If the pair continues to fall, the level of $31,000 may give some support ahead of the $30,000 trough in May. The $29,000 mark, just below the latter, could be another area to keep an eye on. The BTC/USD pair is only negative when trading beneath $30,000; significant resistance levels are identified around $37,500 and $40,000.
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