Bitcoin broke above the $42,000 level. According to technical analysis by NewsBTC’s Aayush Jindal, BTC is showing positive signals and it could rise above $42,200 again.
Bitcoin Gains Speed
Taking its rise above the $41,500 resistance zone, BTC even surpassed the $42,000 resistance zone and climbed above the 100 hourly simple moving average. A top was formed near $42,235 before a downside correction and there was a move below the $41,500 pivot level. BTC even declined below the $41,000 level but found support near the $40,900 level.
It formed a fresh bottom and now climbs above $41,500. It climbed above the 50% Fib retracement level of the drop from the $42,235 high to $40,900 low. It is currently trading above $41,500 and the 100 hourly simple moving average. There is also a key uptrend line forming with support near $41,725.
An immediate resistance is near the $41.725 level. The 61.8% Fib retracement level of the drop from the $42,235 high to $40,900 low is also near the $41,725 level. The next key resistance could be $42,000. To start a strong upward move, BTC must settle above the $42,000 zone, then surpass $42,230. If the bulls are successful, the price could rise towards the $43,200 resistance zone.
Are Drops Limited?
Jindal says that if Bitcoin fails to break past the $42,000 resistance zone, it could start a downside correction. An immediate support is near the $41,250 level. The next major support is seen near the $41,000 level and the trendline zone. A downside break below the trend line could send the price towards $40,750 or the 100 hourly simple moving average.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is slowly 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 – $41,250 followed by $41,000
- Major Resistance Levels – $41,725, $42,000 and $42,500
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