Bitcoin experienced a renewed rise above the $41,000 resistance to the US Dollar. Although Bitcoin is near $41,500 it still has the support of $40,000
- Bitcoin trading is well above $40,000 support.
- The 100 hourly moving average is at $39,800.
- On the hourly chart for the BTC/USD pair, there is support close to $40,000. (Data feed from Kraken).
- If the pair moves below $39,000, it could cause a steep decline.
Bitcoin Price Remains Supported
The $41,500 resistance was not reached by Bitcoin. BTC hit a record high of nearly $41,470. It is currently falling. Below the $41,000 mark, there was a decrease.
It also fell below the 23.6% Fib level of the upmove from $41,470 high to $39,311 low. The price trades well above $39 800 and the 100 hourly simple average.
The Fib level for the upward movement from $41,470 low to $39,311 high is near 50%. The hourly BTC/USD chart shows a significant bullish trendline with support close to $40,050.
Source: BTCUSD at TradingView.com
Surprisingly, resistance is near $41,000. Next major resistance may be at the high of $41,500. The steady rise could be initiated by a successful break above $41,500. The price could rise to $42,000 in the above scenario. In the short term, any additional gains could push the price to $42,500.
What is the Downside to Bitcoin?
Bitcoin could move lower if it fails to break the $41,500 resistance level. The $40,350 area is a support zone for the downside.
Next major support can be seen at the $40,000 and trend lines levels. Support is located near the 39,000-level and 100 hourly simple moving mean. A sharp drop could be initiated if the downside breaks below $39,000. This could lead to a sharp decline in the price towards $37,500.
Technical indicators
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 – $40,000, followed by $39,000.
Major Resistance Levels – $41,000, $41,500 and $42,500.
