Cryptocurrency News

Bitcoin Consolidates Above Support, Could Trigger Fresh Rally Here


Bitcoin price is trading in a positive zone above the $40,000 level against the US Dollar. If BTC clears the $41,200 resistance area, it could start a fresh rally.

  • Bitcoin remained in a positive zone above the $39,000 and $40,000 levels.
  • The price is currently trading well above $39,000 and the 100 hourly simple moving average.
  • There is a major contracting triangle forming with resistance near $40,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a fresh rally once it clears $40,650 and $41,200.

bitcoin price remains

Bitcoin then started a new rise Breaking the key resistance area of ​​$38,500. BTC also climbed above the $40,000 resistance area and settled well above the 100 hourly simple moving average.

However, the price is struggling above the $41,000 level. There were two attempts to gain strength above $41,000 but the bulls failed. A recent high was formed near $41,384 before the price turned lower. There was a decline below $40,500 but the bulls were active near $39,500.

A low is formed near $39,476 and the price is now consolidating in a range. It is trading above the 23.6% Fib retracement level of the recent decline from $41,384 high to $39,476 low.

On the upside, an immediate resistance is forming near the $40,450 level. It is near the 50% Fib retracement level of the recent decline from the $41,384 high to $39,476 low. first major resistance It is near the $40,650 level. There is also a major contracting triangle forming with resistance near $40,650 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

A clear upside break above the triangle resistance could trigger a bullish move. The next resistance is near the $41,200 level. Above the $41,200 level there is a possibility of a move towards the $43,500 level.

Dips Limited in BTC?

If bitcoin fails to clear the $41,200 resistance, it could initiate a downside correction. An initial support on the downside is near the $40,000 level.

The first major support is near the $39.80 level and the triangle lower trend line. A downside break below the triangle support might push the price towards the $38,500 support level and the 100 hourly SMA.

Technical Indicators:

Hourly MACD – The MACD is likely to move back into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 50 level.

Key Support Level – $39,800, followed by $38,500.

Major resistance levels – $40,650, $41,200 and $43,500.



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