Bitcoin Signaling Upside Continuation, Why BTC Could Rally Further

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Bitcoin price is showing positive signs above the $40,000 level against the US Dollar. BTC is likely to continue higher above $41,000 and $41,500 in the near term.

  • Bitcoin started a fresh increase above the $38,500 and $40,000 resistance levels.
  • The price is currently well above $38,500 and the 100 hourly simple moving average.
  • There is a key contracting triangle forming with resistance near $40,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to start a strong increase once it clears $40,600 and $41,000.

Bitcoin Price Turns Green

Bitcoin formed a base above the $38,000 pivot level and extended its upward move. BTC broke the $40,000 resistance zone and settled well above the 100 hourly simple moving average.

It traded as high as $41,128 before it started consolidating gains. It is now trading well above $38,500 and the 100 hourly simple moving average. An immediate support on the downside is near $39,650. It is close to the 23.6% Fib retracement level of the upward move from the $34,915 swing low to $41,128 high.

There is also a key contracting triangle forming with resistance near $40,600 on the hourly chart of the BTC/USD pair. If there is an upside break above the triangle resistance, there are chances of a steady increase above the $41,000 resistance.

Source: BTCUSD on TradingView.com

The first major resistance is near the $41,800 and $42,000 levels, above which the price likely to gain bullish momentum. The next resistance is near the $45,000 level.

Dips Supported in BTC?

If bitcoin fails to clear the $41,000 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 $39,600 level and the triangle lower trend line.

The main support is now forming near the $38,000 level. It is close to the 50% Fib retracement level of the upward move from the $34,915 swing low to $41,128 high. A downside break below the $38,000 support zone might call for a test of the key 100 hourly SMA.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still well above the 50 level.

Major Support Levels – $39,600, followed by $38,000.

Major Resistance Levels – $40,600, $41,000 and $42,000.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. AllStocksNews.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Stephen Phillips
He is a complete nerd and a graduate of computer science. He talks about cryptocurrency and blockchain.
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