Bitcoin continues to rise after gaining good momentum by breaking above the $40,000 level. According to technical analysis by NewsBTC’s Aayush Jindal, it could accelerate further above the $42,650 resistance area.
Bitcoin Gains Upward Momentum
Bitcoin started a massive rally after a close above the $38,500 level. It rallied as high as $42,694 and is currently consolidating gains. According to the analyst, BTC is preparing for the next move and is trading well above the 100 hourly simple moving average.
Besides, there is a key bullish trend line forming with support near $41,600 on the hourly chart of the BTC/USD pair. The pair is also trading well above the 23.6% Fib retracement level of the upward move from the $37,324 high to $42,694 high.
The next major resistance is near the $43,200 zone. A clear upside break above the $43,200 resistance could trigger another rise. In the stated case, the price might even test the $45,000 resistance zone.
Are Drops Limited in Bitcoin?
Jindal says that if Bitcoin fails to start a fresh increase above $42,650, it could face a downside correction. According to him, an immediate support on the downside is near the $41,600 zone. The first major support is seen near the $40,000 zone. This is close to the 50% Fib retracement level of the upward move from the $37,324 low to $42,694 high. Any further losses may require a move towards the $39,500 support area and the 100 hourly simple moving average. If the bulls fail to protect $39,500, there could be a steep decline in the near term.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD is now gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
- Main Support Levels – 41,600 then $40,000
- Main Resistance Levels – $42,650, 43,200 and $45,000
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