Bitcoin is currently facing a strong resistance level around $38,000. However, there are positive signs as the bulls have managed to keep the price above the 20-day exponential moving average (EMA) at $35,666.
The upward-sloping EMA lines and the Relative Strength Index (RSI) in positive territory indicate that the bulls are in control. If the price rebounds from the 20-day EMA, the bulls will make another attempt to break the $38,000 barrier.
If successful, the BTC/USDT pair could reach $40,000. This level may witness strong selling pressure from the bearish side, but if buyers manage to push through, the final rally could target $48,000.
The first sign of weakness would be a close below the 20-day EMA, suggesting a potential range-bound action in the near term. The pair may remain trapped between $34,800 and $38,000 for some time. A breakdown below $34,800 could open the door for a decline to $32,400.
The 4-hour chart shows the price oscillating between $38,000 and $34,800. Both EMA lines are flat, and the RSI is near the midline, indicating that the range-bound action may continue for a while.
The tight consolidation near the 52-week highs is a positive sign as it shows that the bulls are not hastily surrendering their position. This increases the likelihood of a breakout to the upside. If that occurs, the pair could continue its upward trend. The short-term trend would favor the bears if it breaks below $34,800.