Bitcoin has broken the key resistance area of $40,000 with a big bounce. BTC is up over 12% and it may continue to rise above the $43,000 level, according to technical analysis by NewsBTC’s Aayush Jindal.
Bitcoin Rising
Bitcoin managed to start a massive uptrend after clearing the $38,800 resistance zone. There was a break above a key bearish trend line with resistance near $38,000 on the hourly chart of the BTC/USD pair. This opened the doors for a solid rise above the $40,000 resistance and the 100 hourly simple moving average. The price is up over 10% and there was a clear move above the $42,000 resistance zone. It even went as high as $44,192.
Bitcoin is currently consolidating and trading well above the 23.6% Fib retracement level of the upward move from the $37,029 high to $44,192 high. An immediate resistance is near the $44,000 level. The first key resistance is near the $44,200 level. The main resistance is currently near the $44,500 level. A clear move above the $44,500 resistance could push the price higher. In the stated case, it could even make a clear move above $45,000.
Bitcoin Drops Limited?
Jindal says that if Bitcoin fails to break past the $44,200 resistance zone, it could start a downside correction. An immediate support on the downside is near the $43,000 zone. The next major support is seen near the $42,500 level. If there is a downside break below the $42,500 support, the price could gain bearish momentum towards $40,500. It is close to the 50% Fib retracement level of the upward move from the $37,029 high to $44,192 high.
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 correcting from the overbought zone.
- Major Support Levels – $43,000 then $42,500
- Major Resistance Levels – $44,000, 44,200 and $45,000
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