Bitcoin price is showing positive signs above the $40,000 level against the US Dollar. BTC is likely to continue rising above $41,000 and $41,500 in the near term.
- Bitcoin started a fresh increase above the $38,500 and $40,000 resistance levels.
- The price is currently 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 increase once it clears $40,600 and $41,000.
Bitcoin price turns green
Bitcoin formed a base above the $38,000 pivot level and Extend its upward movement. BTC broke the $40,000 resistance area and settled above the 100 hourly simple moving average.
It traded as high as $41,128 before starting to consolidate gains. It is now trading well above $38,500 and the 100 hourly simple moving average. There is immediate support to the downside near $39,650. It is close to the 23.6% Fib retracement level of the upward move from the $34,915 swing low to $41,128.
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 a bullish break above the triangle resistance, there are chances of a steady increase 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 upward momentum. The next resistance is near the $45,000 level.
Supporting Bitcoin dips?
If Bitcoin fails to clear the $41,000 resistance, it may start a downside correction. There is initial support on the downside near the $40,000 level. The first major support is near the $39,600 level and the triangle’s lower trendline.
The main support is now forming near the $38,000 level. It is close to the 50% Fib retracement level of the upward move from the $34,915 swing low to $41,128 high. a break the negative side Below the $38,000 support area may require a test of the 100-hour simple moving average.
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still well above the 50 level.
Key support levels – $39,600, followed by $38,000.
The key resistance levels are $40,600, $41,000, and $42,000.