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Bitcoin price is trading in a positive zone above the $40,000 level against the US Dollar. BTC is likely to start a new rally if it breaks the $41,200 resistance zone. According to technical analysis by NewsBTC’s Aayush Jindal:
- Bitcoin remained in a positive zone above the $39,000 and $40,000 levels.
- The price is currently well above $39,000 and the 100 hourly simple moving average.
- There is a major contracting triangle forming with resistance near $40,650 on the hourly chart of the BTC/USD pair (data from Kraken).
- The pair could start a fresh rally once it crosses $40,650 and $41,200.
Bitcoin (BTC) Price Retains Gains
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Bitcoin started a fresh increase after breaking the key $38,500 resistance zone. BTC even climbed above the $40,000 resistance zone and settled well above the 100 hourly simple moving average.
However, the price seems to be struggling above the $41,000 level. It made two attempts to gain strength above $41,000 but the bulls failed. The last high was formed around $41,384 before the price declined again. The price declined below $40,500 but the bulls were active around $39,500.
BTC settled as low as $39,476 and is now consolidating in a range. It is trading above the 23.6% Fib retracement level of the recent decline from the $41,384 low to $39,476 low.
On the upside, there is an immediate resistance forming near the $40,450 level. This is close to the 50% Fib retracement level of the decline from the $41,384 low to $39,476 low. The first major resistance is near the $40,650 level. There is also a major contracting triangle forming with resistance near $40,650 on the hourly chart of the BTC/USD pair.
A clear upside break above the formation resistance could trigger bullish moves. The next resistance is near the $41,200 level. A close above the $41,200 level is likely a move towards the $43,500 level.
Will Bitcoin (BTC) Drop?
If bitcoin fails to break the $41,200 resistance, it could start a downside correction. An initial support on the downside is near the $40,000 level.
The first major support is near the $39.80 level and the lower trend line of the formation. A downside break below the formation support could push the price towards the $38,500 support level and the 100 hourly SMA.
Technical Indicators
- Hourly MACD – The MACD is likely to retrace into the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 50 level.
- Major Support Levels – $39,800 followed by $38,500
- Major Resistance Levels – $40,650, $41,200 and $43,500
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Hello there! My name is Oktay from Tokensboss editors. I introduce myself as a business graduate and writer. I have been doing research on cryptocurrencies and new business lines for over 2 years.
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