Bitcoin price is showing positive signals above the $40,000 level against the US Dollar. BTC is likely to continue above $41,000 and $41,500 in the near term. According to technical analysis by NewsBTC’s Aayush Jindal:
- Bitcoin started a fresh increase above the $38,500 and $40,000 resistance levels.
- The price is currently well above $38,500 and the 100 hourly simple moving average.
- There is a key contracting triangle forming with resistance near $40.600 on the hourly chart of the BTC/USD pair (data from Kraken).
- The pair looks set to start a strong increase after clearing $40,600 and $41,000.
Bitcoin (BTC) Price Turns Green
Bitcoin formed a bottom above the $38,000 pivot level and expanded its upward move. BTC broke the $40,000 resistance zone and settled well above the 100 hourly simple moving average.
It hit as high as $41,128 before it started consolidating gains. It is currently trading well above $38,500 and the 100 hourly simple moving average. An immediate support on the downside is near $39.650. This is 23% of the upward move from $34,915 to $41,128. Close to 6 Fib retracement level.
There is also a key contracting triangle forming with resistance near $40,600 on the hourly chart of the BTC/USD pair. If there is an upside break above the formation resistance, there are chances of a steady rise above the $41,000 resistance.
The first major resistance is near the $41,800 and $42,000 levels, above which the price is likely to gain bullish momentum. The next resistance is near the $45,000 level.
Will Bitcoin (BTC) Drop?
If bitcoin fails to break the $41,000 resistance, it could start a downside correction. An initial support on the downside is near the $40,000 level. The first major support is near the $39,600 level and the lower trend line of the formation.
The main support is currently forming near the $38,000 level. This is close to the 50% Fib retracement level of the upward move from the $34.915 low to $41.128 high. A downside break below the $38,000 support zone may require testing the important 100 hourly SMA.
Technical Indicators
- Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still well above the 50 level.
- Main Support Levels – 39.600 then $38,000
- Main Resistance Levels – $40, 600, 41,000 and $42,000
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