Bitcoin settled above the $40,000 level against the US Dollar. BTC is now rising and could accelerate further above the $42,650 resistance zone.
Bitcoin started a strong increase above the $40,000 resistance zone.
The price is trading well above $40,000 and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $41,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to rise if it clears the $42,650 resistance zone in the near term.
Bitcoin Price Gains Bullish Momentum
Bitcoin price started a major increase after there was a close above the $38,500 level. BTC gained bullish momentum and was able to surpass the $40,000 zone and the 100 hourly simple moving average.
The upward move was such that the price even rallied above the $41,200 resistance. It traded as high as $42,694 and is currently consolidating gains. It seems like the price is preparing for the next move and trading well above the 100 hourly simple moving average.
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Besides, there is 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 swing low to $42,694 high.
Source: BTCUSD on TradingView.com
An immediate resistance is near the $42,650 level. The next major resistance is near the $43,200 zone. A clear upside break above the $43,200 resistance level could spark another increase. In the stated case, the price could even test the $45,000 resistance zone.
Dips Limited in BTC?
If bitcoin fails to start a fresh increase above $42,650, it could a downside correction. An immediate support on the downside is near the $41,600 zone. The first major support is seen near the $40,000 zone.
It is near the 50% Fib retracement level of the upward move from the $37,324 swing low to $42,694 high. Any more losses might call for a move towards the $39,500 support zone and the 100 hourly simple moving average. If the bulls fail to protect $39,500, there could be a sharp decline in the near term.
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.
Major Support Levels – $41,600, followed by $40,000.
Major Resistance Levels – $42,650, $43,200 and $45,000.