TA: Bitcoin Signaling Upside Continuation, Why BTC Could Rally Further
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.
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.