Bitcoin retraces losses and trades above $41,000. According to technical analysis by NewsBTC’s Aayush Jindal, bullish momentum could gain momentum above $41,350 and $41,500.
Bitcoin Targets Breakout Upward
Bitcoin started a fresh increase above the $40,000 resistance zone yesterday. The bulls gained strength and managed to push the price above $40,500. There was a move above the 23.6% Fib retracement level of the main decline from the $43,415 high to $39,240 high. Besides, there was a break above a connecting bearish trend line with resistance near $40,000 on the hourly chart of the BTC/USD pair. The pair even broke the $41,000 resistance zone and climbed above the 100 hourly simple moving average.
An immediate resistance is near the $41,350 level. The 50% Fib retracement level of the main decline from the $43,415 high to $39,240 high is also near the $41,350 zone. According to him, the next key resistance could be $41,500. If the bulls can clear the $41,350 and $41,500 resistance levels, the price could spike higher. In the stated case, the price could rally towards the $41,800 resistance zone. Any further gains could set the pace for a move towards the $42,500 level in the near term.
Will Bitcoin Drop Again?
Jindal says that if Bitcoin fails to break past the $41,500 resistance zone, it could start another decline. An immediate support is near the $41,000 level. The next major support is seen near the $40,550 level. A downside break below the $40,550 support zone could accelerate losses. In the stated case, the price could drop to the $40,000 or even $39,250 level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 50 level.
- Major Support Levels – $41,000 then $40,550
- Major Resistance Levels – $41,350, 41,500 and 41,800
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