Bitcoin has broken the $40,000 key resistance level against the US Dollar. BTC is now up more than 12 percent and could continue its rise to $43,000.
- Bitcoin has risen above some key barriers near the $40,000 resistance.
- The price trades above $42,000.
- The hourly BTC/USD chart showed a breakout above the key bearish trendline with resistance at $38,000 (data feed Kraken).
- This pair is in a bullish zone, and could accelerate towards $45,000
Bitcoin price increases
Bitcoin prices remained positive above the $38,00 level. BTC experienced a big increase once it crossed the $38,800 resistance area.
The hourly BTC/USD chart showed a breakout above the key bearish trendline with resistance at $38,000. The breakout opened doors to a rapid rise above the $40,000 resistance level and the simple moving average 100 hours per hour.
Over 10% price gains were recorded and a move over the $42,000 resistance level was evident. The price even crossed the $43,000 mark and reached $44,192.
Bitcoin is currently consolidating, trading at 23.6% Fib level above the retracement of the upward movement from $37.029 swing low to $44,192 peak. The $44,000 mark is the immediate resistance. It is located near $44,200 as the initial key resistance.
Source: BTCUSD from TradingView.com
Now, the main resistance lies at $44,500. The price could move higher if it breaks through the $44,500 barrier. It could attempt to move over $45,000 in the above case.
BTC Dips Limited
Bitcoin could begin a downtrend correction if it fails to break the $44,200 resistance level. Near the $43,000 mark, there is immediate support for the downside.
Next major support will be seen at the $42,500 mark. A downside breakout below $42,500 could lead to bearish momentum and push the price towards $40,000. This price is at the 50% Fib level of the upward swing from $37.029 swing lows to $44,192 highs.
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 correcting from the overbought zone.
Major Support Levels – $43,000, followed by $42,500.
Major Resistance Levels – $44,000, $44,200 and $45,000.
