Bitcoin Corrects Gains, Why Dips Could be Attractive In Short-term

Bitcoin rallied above the $42,000 resistance zone against the US Dollar. BTC is correcting gains, but it might find support near the $40,000 zone.

Bitcoin extended rally and even traded above the $42,000 resistance zone.
The price is trading above $40,000 and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $40,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might start a fresh increase unless there is a close below the 39,500 support zone.

Bitcoin Price Dips
Bitcoin price remained well bid above the $40,000 support zone. BTC extended rally and climbed above the $42,000 resistance zone.
The price even spiked above the $42,500 level and settled above the 100 hourly simple moving average. A high was formed near $42,547 before the price started a downside correction. There was a minor decline below the $41,650 support level.
Bitcoin traded below the 23.6% Fib retracement level of the upward move from the $37,160 swing low to $42,547 high. It is now consolidating near the $40,800 level. There is also a key bullish trend line forming with support near $40,250 on the hourly chart of the BTC/USD pair.
On the upside, an immediate resistance is near the $41,250 level. The next major resistance is near the $42,000 level. If there is a clear move above the $42,000 resistance zone, the price might gain bullish momentum. In the stated case, the price could rise towards the $42,500 zone.

Source: BTCUSD on TradingView.com
If the bulls remain in action, they might attempt a new weekly high above the $42,500 zone. The next major resistance sits near the $43,200 level.
More Losses in BTC?
If bitcoin fails to clear the $41,650 resistance zone, it could continue to move down. An immediate support on the downside is near the $40,500 zone.
The next major support is seen near the $40,250 level and the trend line. The main support sits near the $40,000 zone or the 50% Fib retracement level of the upward move from the $37,160 swing low to $42,547 high. If there is a downside break below the $39,500 support, the price might gain bearish momentum.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $40,250, followed by $39,500.
Major Resistance Levels – $41,250, $41,650 and $42,500.

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 16,978.93
ethereum
Ethereum (ETH) $ 1,279.41
tether
Tether (USDT) $ 0.999572
bnb
BNB (BNB) $ 290.64
usd-coin
USD Coin (USDC) $ 0.999647
binance-usd
Binance USD (BUSD) $ 1.00
xrp
XRP (XRP) $ 0.390917
dogecoin
Dogecoin (DOGE) $ 0.099497
cardano
Cardano (ADA) $ 0.318756
matic-network
Polygon (MATIC) $ 0.926226
polkadot
Polkadot (DOT) $ 5.57
staked-ether
Lido Staked Ether (STETH) $ 1,264.42
okb
OKB (OKB) $ 22.02
litecoin
Litecoin (LTC) $ 76.87
shiba-inu
Shiba Inu (SHIB) $ 0.000009
dai
Dai (DAI) $ 0.999640
tron
TRON (TRX) $ 0.054057
solana
Solana (SOL) $ 13.61
uniswap
Uniswap (UNI) $ 6.31
avalanche-2
Avalanche (AVAX) $ 13.37
leo-token
LEO Token (LEO) $ 4.07
chainlink
Chainlink (LINK) $ 7.45
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 16,929.65
cosmos
Cosmos Hub (ATOM) $ 10.20
ethereum-classic
Ethereum Classic (ETC) $ 19.66
monero
Monero (XMR) $ 147.40
the-open-network
The Open Network (TON) $ 1.79
stellar
Stellar (XLM) $ 0.087400
bitcoin-cash
Bitcoin Cash (BCH) $ 110.73
quant-network
Quant (QNT) $ 130.96
algorand
Algorand (ALGO) $ 0.241013
crypto-com-chain
Cronos (CRO) $ 0.064704
filecoin
Filecoin (FIL) $ 4.53
apecoin
ApeCoin (APE) $ 4.02
near
NEAR Protocol (NEAR) $ 1.71
vechain
VeChain (VET) $ 0.019332
hedera-hashgraph
Hedera (HBAR) $ 0.048504
internet-computer
Internet Computer (ICP) $ 4.22
flow
Flow (FLOW) $ 1.10
terra-luna
Terra Luna Classic (LUNC) $ 0.000179
elrond-erd-2
MultiversX (Elrond) (EGLD) $ 43.22
frax
Frax (FRAX) $ 1.00
eos
EOS (EOS) $ 0.934774
trust-wallet-token
Trust Wallet (TWT) $ 2.31
the-sandbox
The Sandbox (SAND) $ 0.595039
tezos
Tezos (XTZ) $ 1.02
aave
Aave (AAVE) $ 63.91
theta-token
Theta Network (THETA) $ 0.906107
chiliz
Chiliz (CHZ) $ 0.167604
huobi-token
Huobi (HT) $ 6.77