Bitcoin price continued its upward trend above the $42,000 resistance line. BTC is currently consolidating gains and could test the $40,800 support area.
- Bitcoin is well above the $41,200 and $42,000 levels.
- The price is trading above $41,200 and the 100-hour simple moving average.
- The hourly chart of the BTC/USD pair (data feed from Kraken) shows a major bullish trendline forming with support near $40,880.
- The pair may correct downwards towards $40,800 before starting a new advance.
Bitcoin price rises more than 10%
Bitcoin price began a strong rise above the $38,500 resistance zone. BTC is up more than 10% in the last few sessions and has broken many hurdles near $40,000.
It even cleared the $41,200 resistance line and surged above the $42,000 area. A new multi-month high was formed near $42,415 and the price is currently correcting its upward move. There was a move below the $42,000 level. The price is currently testing the 23.6% Fib retracement level from the $39,360 swing low to the $42,415 high.
Bitcoin is also trading above $41,200 and the 100-hour simple moving average. Moreover, on the hourly chart of the BTC/USD pair, there is a major bullish trend line forming with support near $40,880. The trend line is close to the 50% Fib retracement level rising from the $39,360 swing low to the $42,415 high.
On the other hand, immediate resistance is close to the $42,200 level. The first major resistance is forming near $42,500, above which the price may rise towards the $43,200 level.
Source: TradingView.com BTCUSD
A break above the $43,200 resistance could push the price higher. The next major resistance could be near $44,000, above which BTC could rise towards the $45,000 level.
Are dips limited in BTC?
If Bitcoin fails to rise above the $42,200 resistance zone, a downward correction could begin. Immediate support for the downside is near the $41,200 level.
The next major support is near $40,800 and is a trend line. There is further downside risk if it falls below $40,800. If indicated, the price may fall towards the $40,000 support level in the near term.
Technical indicators:
Hourly MACD – MACD is now losing speed in bullish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $41,200, then $40,800.
Key resistance levels – $42,200, $42,500 and $43,200.