TA: Bitcoin Surges To $40K, Why BTC Could Rally Further
Bitcoin price started a strong upward move above the $35,000 resistance against the US Dollar. BTC is showing positive signs and it could rally further above $40,000.
- Bitcoin started a strong increase above the $33,000 and $35,000 resistance levels.
- The price is now trading well above $35,000 and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $35,500 with resistance near $31,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct gains, but the bulls are likely to remain active near $37,000.
Bitcoin Price Surges above $38,000
Bitcoin price found a strong buying interest near the $32,000 zone. BTC formed a support base near the $32,000 and it started a major upward move.
The price surged above the $32,000 and $35,500 resistance levels. There was a clear break above the $38,000 resistance level. The upward move gained strength and the price even traded close to the $40,000 resistance zone.
A high was formed near $39,721 and the price is now correcting gains. It is trading near the 23.6% Fib retracement level of the recent rally from the $33,904 swing low to $39,723 high. Bitcoin is now trading well above $35,000 and the 100 hourly simple moving average.
There is also a key bullish trend line forming with support near $35,500 with resistance near $31,250 on the hourly chart of the BTC/USD pair. It is showing a lot of positive signs near the $38,000 level. On the upside, an initial resistance is near the $39,000 level.
Source: BTCUSD on TradingView.com
The first major resistance is near the $39,500 level. The main resistance sits near $40,000. A successful break and close above the $40,000 level could initiate a fresh rally in the near term. In the stated case, the price is likely to move towards the $42,500 level in the near term.
Dip Supported in BTC?
If bitcoin fails to climb above the $39,500 and $40,000 resistance levels, it could start a downside correction. An initial support on the downside is near the $37,500 level.
The first major support is now near the $36,800 zone. A clear downside break below the $36,800 support may possibly push the price towards the $36,000 support zone in the near 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 well in the overbought zone.
Major Support Levels – $37,500, followed by $36,800.
Major Resistance Levels – $39,000, $39,500 and $40,000.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow