Bitcoin price rose more than 5% and broke the $40,000 resistance level. BTC is rising and could soon head higher towards the $42,000 resistance.
- Bitcoin broke the $38,500 resistance zone and surged above $40,000.
- The price is trading above $40,000 and the 100-hour simple moving average.
- The hourly chart of the BTC/USD pair (data feed from Kraken) shows a connecting bullish trendline forming with support near $40,100.
- The pair may continue to rise towards the $42,000 resistance.
Bitcoin price liquidated at $40,000
Bitcoin price remained strong and was able to break the $38,500 resistance zone. BTC bulls gained strength and were able to erase the $39,500 resistance area.
The price finally surged above the $40,000 resistance. It rose more than 5% and hit a new multi-month high near $40,890. The price is now consolidating gains above the 23.6% Fib retracement level from the $39,360 swing low to the $40,890 high.
Bitcoin is also trading above $40,000 and the 100-hour simple moving average. Moreover, on the hourly chart of the BTC/USD pair, there is a connecting bullish trend line forming with support near $40,100. The trend line is close to 50% of the Fib retracement level, which recently increased from the $39,360 swing low to the $40,890 high.
On the other hand, immediate resistance is near the $40,850 level. The first major resistance is forming near $41,200, above which the price may rise towards the $41,500 level.
Source: TradingView.com BTCUSD
A break above the $41,500 resistance could push the price higher. The next major resistance could be near $42,000, above which BTC could rise towards the $42,400 level.
Are dips supported in BTC?
If Bitcoin fails to rise above the $40,850 resistance zone, a downward correction could begin. Immediate support for the downside is near the $40,500 level.
The next major support is near $40,000 and is a trend line. There is further downside risk if it falls below $40,000. If indicated, the price may fall towards the $39,720 support in the near term.
Technical indicators:
Hourly MACD – MACD is now picking up speed in bullish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $40,500, then $40,000.
Key resistance levels – $40,850, $41,200 and $42,000.