Bitcoin managed to take the recovery wave above $41,400. According to technical analysis by NewsBTC’s Aayush Jindal, if there is a clear close above $41,500 and $41,800, BTC could rise even higher.
Bitcoin Shows Positive Signs
After forming a bottom above the $40,000 level, Bitcoin started a decent recovery wave and managed to clear the $41,000 resistance zone. It stayed in the positive zone and settled above the $41,400 level. It even climbed above the $41,500 resistance and the 100 hourly simple moving average. A top was formed near the $41,825 level and the price is now consolidating gains.
Bitcoin is trading well above the 23.6% Fib retracement level of the recent rise from the $38,570 high to $41,825 high. There is also a short term contracting triangle forming with resistance near $41,510 on the hourly chart of the BTC/USD pair.
An immediate resistance is near the $41,500 level. The next key resistance could be $41,800. To start a strong upward move, the price must settle above the $41,500 zone and then surpass $41,800. If the bulls are successful, the price could rise towards the $42,500 resistance zone. Any further gains could see a move towards the $43,200 level.
Are Drops Limited?
Jindal says that if Bitcoin fails to break past the $41,500 resistance zone, it could start a downside correction. An immediate support on the downside is near the $41,050 level. The next major support is near the $40,400 level and the 100 hourly simple moving average. This is close to the 50% Fib retracement level of the recent rise from the $38,570 high to $41,825 high. A downside break below the $40,400 and $40,000 support zones could increase selling pressure.
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 – 41,050 followed by $40,200
- Major Resistance Levels – 41,510, 41,800 and 42,500
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