Bitcoin price extended its rally above the $42,000 resistance. BTC is now correcting gains and might test the $40,800 support zone.
Bitcoin surged further above the $41,200 and $42,000 levels.
The price is trading above $41,200 and the 100 hourly Simple moving average.
There is a major bullish trend line forming with support near $40,880 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct lower toward $40,800 before it starts a fresh increase.
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Bitcoin Price Rises Over 10%
Bitcoin's price has experienced a significant increase, surpassing the resistance level of $38,500. Over the past few sessions, BTC has gained more than 10% and successfully overcome several obstacles around $40,000.
Furthermore, it has even surpassed the resistance at $41,200 and surged above the $42,000 range, reaching a new high for the past few months at around $42,415. Currently, the price is undergoing a correction after dropping below the $42,000 level. It is currently testing the 23.6% Fibonacci retracement level, which is based on the upward movement from the swing low of $39,360 to the high of $42,415.
Bitcoin is also trading above $41,200 and the 100-hourly Simple Moving Average (SMA). Additionally, there is a significant bullish trend line forming with support near $40,880 on the hourly chart of the BTC/USD pair. This trend line aligns closely with the 50% Fibonacci retracement level, which is based on the upward movement from the swing low of $39,360 to the high of $42,415.
Looking ahead, the immediate resistance lies near the $42,200 level. The first major resistance is expected to form near $42,500, above which the price may rise towards the $43,200 level.
A potential breakout above the $43,200 resistance level may lead to further upward momentum in the price. The subsequent significant resistance level to watch out for is around $44,000, surpassing which Bitcoin (BTC) could potentially climb towards the $45,000 mark.
Are Dips Limited In BTC?
If Bitcoin fails to rise above the $42,200 resistance zone, it could start a downside correction. Immediate support on the downside is near the $41,200 level.
The next major support is near $40,800 and the trend line. If there is a move below $40,800, there is a risk of more downsides. In the stated case, the price could drop toward the $40,000 support 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 above the 50 level.
Major Support Levels – $41,200, followed by $40,800.
Major Resistance Levels – $42,200, $42,500, and $43,200.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.