Bitcoin started a fresh increase yesterday above the $40,000 resistance before the Fed decision. BTC continues to find support and it could rise again above the $41,500 resistance, according to technical analysis by NewsBTC’s Aayush Jindal.
Bitcoin Protects Its Gains
Bitcoin reacted to the downside after rising to $41,500 and even dropped below the $40,000 level. However, the bulls were active near the $39,000 zone and the 100 hourly simple moving average. There is also a major bullish trend line forming with support near $39,850 on the hourly chart of the BTC/USD pair. A bottom was formed near $39,300 and the price started a fresh increase. There was a clear move above the $40,000 resistance zone.
Bitcoin even rallied above the $40,800 level. It is currently consolidating near the $41,000 resistance area. It also tested the 23.6% Fib retracement level of the upward move from the $39,308 high to $41,470 high.
BTC is facing resistance near the $41,200 level. The next major resistance could be near the recent local top or $41,600. A clear move above the $41,600 level could open the doors for another rise. In the stated case, the price could rally to the $42,500 level. More gains could send the price towards the $43,200 level in the near term.
Will Bitcoin Drop?
Jindal says that if Bitcoin fails to break past the $41,600 resistance zone, it could start a downside correction. An immediate support on the downside is near the $40,500 area. The next major support is seen near the $40,300 level. This is close to the 50% Fib retracement level of the upward move from the $39,308 high to $41,470 high. The main support is still near the $40,000 zone, below which the price could test $39,000.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now losing momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 50 level.
- Major Support Levels – 40,500 then $40,000
- Major Resistance Levels – 41,200, 41,600 and 42,500
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