Bitcoin price is showing positive signs above the $40,000 level against the US Dollar. BTC is likely to continue above $41,000 and $41,500 in the near term.
- Bitcoin started a fresh rise above the $38,500 and $40,000 resistance levels.
- The price is currently trading well above $38,500 and the 100 hourly simple moving average.
- There is a major contracting triangle forming with resistance near $40,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to start a strong rise once it clears $40,600 and $41,000.
bitcoin price turns green
Bitcoin formed a base above the $38,000 pivot level and stepped up. BTC broke the $40,000 resistance area and settled well above the 100 hourly simple moving average.
It traded as high as $41,128 before it started consolidating gains. It is now trading above $38,500 and the 100 hourly simple moving average. On the downside, immediate support is near $39,650. It is close to the 23.6% Fib retracement level of the upward move from $34,915 low to $41,128 high.
There is also a major 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 triangle resistance, there is a possibility of a continuation above the $41,000 resistance.
Source: BTCUSD on TradingView.com
The first major resistance is near the $41,800 and $42,000 levels, above which the price is likely to gain momentum. The next resistance is near the $45,000 level.
Supported Dips in BTC?
If bitcoin fails to clear the $41,000 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 $39,600 level and the triangle lower trend line.
The main support is now forming near the $38,000 level. It is near the 50% Fib retracement level of the upward move from $34,915 low to $41,128 high. a downside brake A test of the key 100 hourly SMA could be needed below the $38,000 support area.
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.
Key Support Level – $39,600, followed by $38,000.
Major resistance levels – $40,600, $41,000 and $42,000.