Bitcoin rose above $42,000 against the US Dollar resistance zone. BTC may be correcting its gains but could find support in the $40,000 area.
- Bitcoin traded higher than the $42,000 resistance area, extending its rally.
- The market is currently trading at above $40,000 with the simple moving average of 100 hours.
- A key bullish trend line is emerging with support at $40,250 (data feed Kraken).
- If the close is below 39,500, then it could start a new increase.
The Bitcoin price drops
Bitcoin prices remained above $40,000 support. BTC rallied and reached the $42,000 resistance level.
Price even soared over $42,500 and then settled well above the 100 hourly simple moving mean. Before the downside correction began, a high of $42,547 was reached. A minor drop was seen below the support level of $41,650.
Bitcoin fell below 23.6% Fib level for the upward movement from $37,160 swing lows to $42,547 highs. The $40,800 mark is where it consolidates now. On the hourly chart for the BTC/USD pair, there is a bullish trend line that forms with support at $40,250.
The $41,250 mark is the immediate resistance. Next is $42,000. Bullish momentum could be achieved if the price moves above $42,000. The price may rise to $42,500 in this scenario.
Source: BTCUSD from TradingView.com
The bulls might try to reach a weekly record of $42,500 if they are still active. Next comes resistance at the $43,200 area.
BTC Losses:
It could fall further if bitcoin does not clear the $41,650 resistance area. The $40,500 area is a support zone for the downside.
Next major support can be seen at or near the 40,250 and trend lines levels. Main support is found near the $40,000 level or at the 50% Fib-retracement level for the upward swing from the $37.160 swing low to the $42,547 peak. The price could gain bearish momentum if it breaks below $39,500.
Indicators technical
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $40,250, followed by $39,500.
Major Resistance Levels – $41,250, $41,650 and $42,500.
