Bitcoin experienced a dramatic rise in price against the US Dollar, surpassing the $40,000 threshold. BTC could correct lower but the downsides may be limited to below $40,000.
- Bitcoin cleared the $40,000 resistance, and it entered a positive zone.
- The 100-hourly simple moving average is at the same time above $44,500.
- On the hourly chart for the BTC/USD pair, there is support close to $39250. This trend line forms a bullish signal (data feed Kraken).
- Although the pair may correct lower, there is key support near $40,000.
Bitcoin Price Rallies 5%
The Bitcoin price reached a level above $38,000. BTC saw a steady rise above the $39550 resistance level, and the 100-hourly simple moving average.
This opened up the possibility of a rise above $40,000 resistance. The bulls took charge and were able push the price higher than the $41,000 resistance. Over 5% was gained and the price moved towards $41,800. Near $41,706 was the high and now, the price is correcting its gains.
It was trading below $41,000. The 23.6% Fib level was tested during the wave that ran from the $38,170 low to the $41,706 high.
There are support levels near $45,000, which is a downside indicator. A key bullish trendline is also in place with support close to $39,250. This hourly chart shows the BTC/USD currency pair. Bitcoin could face resistance at the $41,200 mark on the upside.
Source: BTCUSD from TradingView.com
Near the $41,800 level, which is currently at its highest point, could come next to major resistance. Price could soar above $41,800 to push it above $42,000 resistance. The price could rise to $43,200 in the above scenario.
BTC Dips Limited
Bitcoin could begin a downtrend if it fails to break the $41,200 resistance level. Near the $40,000.500 mark is immediate support for the downside.
Near the $40,000 mark is where you will find the next significant support. This is just below the 50% Fib support level for the most recent wave, which saw it swing from $41,706 low to $38,170 high. Support is now located near trend line, at $39,000
Technical indicators
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 50 level.
Major Support Levels – $40,500, followed by $40,000.
Major Resistance Levels – $41,200, $41,800 and $42,000.
