TA: Bitcoin Writes Bullish Pattern, Why Are Drops Attractive For BTC?

Bitcoin price formed a bottom above $35,000 and started another surge against the US Dollar. BTC broke the $38,000 resistance and even traded around $40,000. Bitcoin started another surge above the $38,000 and $38,500 resistance levels. The price is now well above $38,000 and the 100 hourly simple moving average. There was a pause above a major bearish channel with resistance near $36,200 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could correct the decline, but the bulls are likely to remain active near USD 38,000. Bitcoin Price Rising Bullish Momentum Bitcoin slowly dropped, but the bulls were active near the $35,000 support zone. BTC established a base above the $35,000 level and started a strong rally recently. There was a clear break above the $36,500 resistance and the 100 hourly simple moving average. More importantly, there was a break above a major bearish channel with resistance near $36,200 on the hourly chart of the BTC/USD pair. The pair gained momentum and broke the key USD 38,000 resistance level. The upward move caused the price to trade close to the $40,000 level. Source: BTCUSD peaked near $39,849 on TradingView.com and the price is now correcting lower. It broke the $39,000 support level to start the current correction. An immediate support is near the USD 38,650 level. It is near the 23.6% Fib retracement level of the bullish wave from the $34,916 high to $39,849 high. On the upside, an initial resistance is near the $39,200 level. The first major resistance is near the USD 39,800 and USD 40,000 levels, above which the price is likely to gain bullish momentum. The next resistance is near the $42,000 level. Are dips supported in BTC? If bitcoin fails to break the $39,800 resistance, it could trigger a downside correction. An initial support on the downside is near the USD 38,600 level. The first major support is near the $38,000 level. The main support is currently forming near the USD 37,500 level. it

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