Bitcoin settled above the $40,000 level against the US Dollar. BTC is now rising and could accelerate further above the $42,650 resistance zone.
- Bitcoin started a strong increase above the $40,000 resistance zone.
- The price is trading well above $40,000 and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $41,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to rise if it clears the $42,650 resistance zone in the near term.
Bitcoin Price Gains Bullish Momentum
Bitcoin price started a major increase after there was a close above the $38,500 level. BTC gained bullish momentum and was able to surpass the $40,000 zone and the 100 hourly simple moving average.
The upward move was such that the price even rallied above the $41,200 resistance. It traded as high as $42,694 and is currently consolidating gains. It seems like the price is preparing for the next move and trading well above the 100 hourly simple moving average.
Besides, there is key bullish trend line forming with support near $41,600 on the hourly chart of the BTC/USD pair. The pair is also trading well above the 23.6% Fib retracement level of the upward move from the $37,324 swing low to $42,694 high.
Source: BTCUSD on TradingView.com
An immediate resistance is near the $42,650 level. The next major resistance is near the $43,200 zone. A clear upside break above the $43,200 resistance level could spark another increase. In the stated case, the price could even test the $45,000 resistance zone.
Dips Limited in BTC?
If bitcoin fails to start a fresh increase above $42,650, it could a downside correction. An immediate support on the downside is near the $41,600 zone. The first major support is seen near the $40,000 zone.
It is near the 50% Fib retracement level of the upward move from the $37,324 swing low to $42,694 high. Any more losses might call for a move towards the $39,500 support zone and the 100 hourly simple moving average. If the bulls fail to protect $39,500, there could be a sharp decline in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $41,600, followed by $40,000.
Major Resistance Levels – $42,650, $43,200 and $45,000.