Bitcoin price is trading in positive territory above the $40,000 level against the US Dollar. BTC is likely to start a new rally if it clears the $41,200 resistance area.
- Bitcoin remains in positive territory above the $39,000 and $40,000 levels.
- The price is currently 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 is likely to start a new high once it crosses $40,650 and $41,200.
Bitcoin price still high
Bitcoin started a new surge after that Breaking the major resistance area of $38,500. BTC even rose above the $40,000 resistance area and settled above the 100 hourly simple moving average.
However, the price appears to be struggling above the $41,000 level. There were two attempts to gain strength above $41,000, but the bulls failed. The recent rally formed near $41,384 before the price corrected lower. It fell below $40,500, but the bulls were active near $39,500.
The bottom 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 to $39,476 low.
On the upside, immediate resistance is forming near the $40,450 level. It is close to the 50% Fib retracement level of the recent decline from $41,384 to the $39,476 low. the first great resistance 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 bullish break above the triangle resistance could trigger bullish moves. The next resistance is near the $41,200 level. A close above the $41,200 level is likely to trigger a move towards the $43,500 level.
Dips Limited in BTC?
If Bitcoin fails to get rid of the $41,200 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 $39.80 level and the lower trendline of the triangle. A bearish breakout below the triangle support could push the price towards the $38,500 support level and the 100-hour simple moving average.
Hourly MACD – The MACD is likely to return to the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 50 level.
Key support levels – $39,800, followed by $38,500.
Key resistance levels – $40,650, $41,200 and $43,500.