Bitcoin price extended its rally above the USD 42,000 resistance. BTC is now correcting gains and could test the USD 40,800 support zone.
- Bitcoin rose further above the USD 41,200 and USD 42,000 levels.
- The price is trading above USD 41,200 and the 100 hourly Simple Moving Average.
- A major bullish trendline is forming with support near $40,880 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct lower towards $40,800 before starting a new rise.
Bitcoin Price Rises Over 10%
Bitcoin price started a strong rise above the USD 38,500 resistance zone. BTC gained more than 10% in the past few sessions, breaking many hurdles near $40,000.
It even managed to overcome the USD 41,200 resistance and peaked above the USD 42,000 zone. A new multi-month high is formed near $42,415 and the price is now correcting gains. There was a move below the USD 42,000 level. The price is now testing the 23.6% Fib retracement level of the upward move from the $39,360 swing low to the $42,415 high.
Bitcoin is also trading above $41,200 and the 100 hourly Simple Moving Average. Furthermore, a major bullish trendline is forming with support around $40,880 on the hourly chart of the BTC/USD pair. The trendline is close to the 50% Fib retracement level of the upward move from the $39,360 swing low to the $42,415 high.
On the upside, immediate resistance is around the $42,200 level. The first major resistance forms around $42,500, above which the price could rise towards the $43,200 level.
Source: BTCUSD on TradingView.com
A close above the USD 43,200 resistance could send the price rising further. The next major resistance could be near USD 44,000, above which BTC could rise towards the USD 45,000 level.
Are dips limited in BTC?
If Bitcoin fails to rise above the USD 42,200 resistance zone, a downward correction could occur. The immediate downside support is near the USD 41,200 level.
The next major support is around $40,800 and the trendline. If there is a move below $40,800, there is a risk of more downside. In the mentioned case, the price could fall towards the $40,000 support in the short term.
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 now above the 50 level.
Major support levels – USD 41,200, followed by USD 40,800.
Major resistance levels – $42,200, $42,500 and $43,200.