Bitcoin price has risen more than 5% and has broken the USD 40,000 resistance. BTC is rising and could soon climb higher towards the USD 42,000 resistance.
- Bitcoin broke through the USD 38,500 resistance zone and rose above USD 40,000.
- The price is trading above $40,000 and the 100 hourly Simple Moving Average.
- A connecting bullish trendline is forming with support near $40,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to rise towards the $42,000 resistance.
Bitcoin price clears $40,000
Bitcoin price remained strong and managed to break the USD 38,500 resistance zone. BTC bulls gained strength and were able to break the USD 39,500 resistance zone.
Ultimately, the price rose above the $40,000 resistance zone. It is up over 5% and a new multi-month high is forming near $40,890. The price is now consolidating gains above the 23.6% Fib retracement level from the recent rise from the $39,360 swing low to the $40,890 high.
Bitcoin is also trading above $40,000 and the 100 hourly Simple Moving Average. Furthermore, a connecting bullish trendline is forming with support around $40,100 on the hourly chart of the BTC/USD pair. The trendline is close to the 50% Fib retracement level of the recent rise from the $39,360 swing low to the $40,890 high.
On the upside, immediate resistance is around the $40,850 level. The first major resistance forms around $41,200, above which the price could rise towards the $41,500 level.
Source: BTCUSD on TradingView.com
A close above the USD 41,500 resistance could send the price higher. The next major resistance could be near USD 42,000, above which BTC could rise towards the USD 42,400 level.
Are dips supported in BTC?
If Bitcoin fails to rise above the USD 40,850 resistance zone, a downward correction could occur. The immediate downside support is near the USD 40,500 level.
The next major support is around $40,000 and the trendline. If there is a move below $40,000, there is a risk of more downside. In the mentioned case, the price could fall towards the support at $39,720 in the short term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – USD 40,500, followed by USD 40,000.
Major resistance levels – $40,850, $41,200 and $42,000.