Bitcoin Signaling Further Rise, Why BTC Could Rally More
The price of Bitcoin is showing positive signs above the $ 40,000 level against the US dollar. BTC is expected to continue to surpass $ 41,000 and $ 41,500 in the near term.
- Bitcoin started a further rise above the resistance levels of $ 38,500 and $ 40,000.
- The price is currently well above $ 38,500 and the 100 hour simple moving average.
- A key contraction triangle is forming with resistance near $ 40,600 on the hourly chart of the BTC / USD pair (Kraken data feed).
- The pair is expected to start a strong rise once it crosses $ 40,600 and $ 41,000.
Bitcoin price turns green
Bitcoin formed a base above the pivot level of $ 38,000 and continued its upward movement. BTC broke through the $ 40,000 resistance zone and moved well above the 100 hour simple moving average.
He traded up to $ 41,128 before starting to consolidate his gains. It is now trading well above $ 38,500 and the 100 hour simple moving average. Immediate downside support is near $ 39,650. It is near the 23.6% Fib retracement level of the bullish move from the $ 34,915 low to $ 41,128.
There is also a key contraction triangle forming with resistance near $ 40,600 on the hourly chart for the BTC / USD pair. If there is a bullish breakout above the triangle resistance, there is a chance of a steady rise 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 is likely to gain bullish momentum. The next resistance is near the $ 45,000 level.
Dips supported in BTC?
If bitcoin fails to break through the resistance of $ 41,000, it could trigger a downward correction. Initial bearish support is near the $ 40,000 level. The first major support is near the $ 39,600 level and the lower triangle trendline.
Major support is now forming near the $ 38,000 level. It is near the 50% Fib retracement level of the bullish move from $ 34,915 low to $ 41,128 high. A break down below the $ 38,000 support area could require a key 100 hour SMA test.
Hourly MACD – The MACD is slowly accelerating 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.