Bitcoin’s recovery has extended above $41,400 against US Dollar. BTC may rally even further if it closes above $41,500 or $41,800.
- Bitcoin experienced a solid recovery above $41,000 and $41,400 levels.
- Now, the price trades above $41,000. The 100-hourly simple moving average is also in play.
- A short-term contracting triangle is emerging with resistance at $41,510 (data feed Kraken).
- For a major move to occur, both the resistance of $41,500 (and $41,800) must be cleared.
Bitcoin Price shows Positive Signs
The Bitcoin price reached a level above $40,000 BTC experienced a solid recovery and cleared the $41,000 resistance level.
Although the price was in a positive zone, it climbed higher than $41,400. Even surpassing the $41,500 level, the price settled higher than the 100 hourly simple moving mean. The price reached a high of $41,825 and is consolidating its gains.
Bitcoin trading at 23.6% Fib Retracement Level of the Recent Wave from the $38,570 swing high to the $41,825 low is well ahead. A short-term contracting triangle is also emerging with resistance close to $41,510, as shown on the hourly charts of BTC/USD.
Source: BTCUSD from TradingView.com
Near the $41,500 threshold, there is immediate resistance for the upside. Next could be $41,800. The price should rise above $41,500 and clear $41,800 to begin a strong uptrend. The bulls will succeed and the price can rise to $42,500. A move to the $43,200 mark might be possible if there are more gains.
BTC Dips Limited
Bitcoin could begin a downtrend correction if it fails to break the $41,500 resistance level. The $41,050 mark is an immediate support level for the downside.
It is expected to support near the $40,000. level as well as the simple moving average of 100 hours. This is just below the Fib retracement of the wave that went from $38,570 to $41,825 high. Selling pressure could be increased by a downside breakout below the $40,000. support zone or $40,000
Technical indicators
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $41,050, followed by $40,200.
Major Resistance Levels – $41,510, $41,800 and $42,500.
