Bitcoin Regains Strength, Why Bulls Eye Strong Rally above $40K

Bitcoin price started a fresh increase above the $38,500 resistance zone against the US Dollar. BTC even broke $40,000 and it is now correcting gains.

Bitcoin gained traction above the $38,500 and $39,500 resistance levels.
The price is now trading above $40,000 and the 100 hourly simple moving average.
There was a break above a key bearish trend line with resistance near $39,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is correcting gains, but the bulls are likely to remain active near $39,000.

Bitcoin Price Turns Green
Bitcoin price formed a base above the $37,600 level and started a fresh increase. BTC broke the key $38,500 resistance level to move into a positive zone.
The price even broke the $39,000 resistance level and settled well above the 100 hourly simple moving average. Finally, there was a break above the $40,000 resistance zone. There was also a break above a key bearish trend line with resistance near $39,000 on the hourly chart of the BTC/USD pair.
The price traded as high as $41,395 before there was a downside correction. Bitcoin traded below the $40,500 support level. There was a break below the 23.6% Fib retracement level of the recent increase from the $37,678 swing low to $41,395 high.
It is now consolidating near the $40,000 support zone. On the upside, an initial resistance is near the $40,500 level. The first key resistance is near the $40,750 level and a connecting bearish trend line.

Source: BTCUSD on TradingView.com
Therefore, a close above the $40,750 resistance zone and the trend line might trigger a steady increase. The next major resistance is near the $41,500 level. Any more gains could set the pace for a move towards the $42,500 resistance zone in the near term.
Fresh Decline in BTC?
If bitcoin fails to climb above the $40,750 and $41,500 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $49,000 level.
The first major support is now near the $39,500 zone. It is near the 50% Fib retracement level of the recent increase from the $37,678 swing low to $41,395 high. A clear downside break below the $39,500 support might lead the price towards the $38,500 support.
Technical indicators:
Hourly MACD – The MACD is slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Levels – $39,500, followed by $38,500.
Major Resistance Levels – $40,500, $40,750 and $41,500.

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 27,219.29
ethereum
Ethereum (ETH) $ 1,905.70
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 307.40
usd-coin
USD Coin (USDC) $ 1.00
xrp
XRP (XRP) $ 0.525765
staked-ether
Lido Staked Ether (STETH) $ 1,904.34
cardano
Cardano (ADA) $ 0.381815
dogecoin
Dogecoin (DOGE) $ 0.073133
solana
Solana (SOL) $ 21.64
matic-network
Polygon (MATIC) $ 0.905704
tron
TRON (TRX) $ 0.081890
litecoin
Litecoin (LTC) $ 96.32
polkadot
Polkadot (DOT) $ 5.37
binance-usd
Binance USD (BUSD) $ 1.00
shiba-inu
Shiba Inu (SHIB) $ 0.000009
avalanche-2
Avalanche (AVAX) $ 14.75
dai
Dai (DAI) $ 0.999627
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 27,244.30
uniswap
Uniswap (UNI) $ 5.13
chainlink
Chainlink (LINK) $ 6.50
leo-token
LEO Token (LEO) $ 3.59
cosmos
Cosmos Hub (ATOM) $ 10.81
okb
OKB (OKB) $ 45.99
monero
Monero (XMR) $ 149.82
ethereum-classic
Ethereum Classic (ETC) $ 18.22
the-open-network
Toncoin (TON) $ 1.74
stellar
Stellar (XLM) $ 0.092551
bitcoin-cash
Bitcoin Cash (BCH) $ 116.61
internet-computer
Internet Computer (ICP) $ 4.86
filecoin
Filecoin (FIL) $ 4.87
lido-dao
Lido DAO (LDO) $ 2.34
true-usd
TrueUSD (TUSD) $ 0.999382
aptos
Aptos (APT) $ 9.08
quant-network
Quant (QNT) $ 117.89
hedera-hashgraph
Hedera (HBAR) $ 0.050997
crypto-com-chain
Cronos (CRO) $ 0.060474
arbitrum
Arbitrum (ARB) $ 1.23
near
NEAR Protocol (NEAR) $ 1.64
vechain
VeChain (VET) $ 0.020043
the-graph
The Graph (GRT) $ 0.129760
apecoin
ApeCoin (APE) $ 3.16
algorand
Algorand (ALGO) $ 0.153065
the-sandbox
The Sandbox (SAND) $ 0.577959
eos
EOS (EOS) $ 0.921299
paxos-standard
Pax Dollar (USDP) $ 0.999396
frax
Frax (FRAX) $ 0.999637
render-token
Render (RNDR) $ 2.74
elrond-erd-2
MultiversX (EGLD) $ 38.65
optimism
Optimism (OP) $ 1.51