Bitcoin Revisits $40K: Here’s Why BTC Turned Attractive On Dips

Bitcoin price gained bullish momentum above the $38,000 resistance against the US Dollar. BTC is now consolidating gains and it is likely to remain supported near $37,000.

Bitcoin started a steady increase above the $37,000 and $38,000 resistance levels.
The price is now trading above the $37,000 zone and the 100 hourly simple moving average.
There is a short-term contracting triangle forming with resistance near $39,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct lower, but the bulls are likely to protect the $37,000 zone and the 100 hourly SMA.

Bitcoin Price Turns Green
Bitcoin remained well bid above the $35,000 level and it started a fresh increase. BTC broke the key $37,000 resistance zone and the 100 hourly simple moving average to move into a positive zone.
The price even broke the $38,000 level and extended its upward move. The price even tested the $40,000 resistance zone and a high is formed near $40,021. It is now consolidating gains below the $40,000 and $39,500 levels.
There is also a short-term contracting triangle forming with resistance near $39,500 on the hourly chart of the BTC/USD pair. An initial support on the downside is near the $38,000 level. The 23.6% Fib retracement level of the recent wave from the $31,000 swing low to $40,000 zone is also near the $38,000 area.

Source: BTCUSD on TradingView.com
To start a fresh increase, bitcoin price must clear the $39,500 and $40,000 resistance levels. The next major resistance is near the $41,500 level. Any more gains could open the doors for a larger recovery towards the $45,000 level. An intermediate resistance is near the $43,200 level.
Dips Limited in BTC?
If bitcoin fails to clear the $40,000 resistance, there is a risk of a downside correction. An initial support on the downside is near the $38,000 level.
The first major support is now forming near the $37,000 zone and the 100 hourly SMA. A downside break below the $37,000 support could lead the price towards the $35,550 support zone. It is near the 50% Fib retracement level of the recent wave from the $31,000 swing low to $40,000 zone.
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 moving lower towards the 50 level.
Major Support Levels – $38,000, followed by $37,000.
Major Resistance Levels – $39,500, $40,000 and $41,500.

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 27,218.29
ethereum
Ethereum (ETH) $ 1,905.78
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 307.31
usd-coin
USD Coin (USDC) $ 1.00
xrp
XRP (XRP) $ 0.525252
staked-ether
Lido Staked Ether (STETH) $ 1,904.11
cardano
Cardano (ADA) $ 0.381944
dogecoin
Dogecoin (DOGE) $ 0.073040
solana
Solana (SOL) $ 21.60
matic-network
Polygon (MATIC) $ 0.905883
tron
TRON (TRX) $ 0.080839
litecoin
Litecoin (LTC) $ 96.15
polkadot
Polkadot (DOT) $ 5.37
binance-usd
Binance USD (BUSD) $ 1.00
shiba-inu
Shiba Inu (SHIB) $ 0.000009
avalanche-2
Avalanche (AVAX) $ 14.76
dai
Dai (DAI) $ 1.00
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 27,276.31
uniswap
Uniswap (UNI) $ 5.12
chainlink
Chainlink (LINK) $ 6.50
leo-token
LEO Token (LEO) $ 3.60
cosmos
Cosmos Hub (ATOM) $ 10.80
okb
OKB (OKB) $ 46.02
monero
Monero (XMR) $ 150.05
ethereum-classic
Ethereum Classic (ETC) $ 18.21
the-open-network
Toncoin (TON) $ 1.74
stellar
Stellar (XLM) $ 0.092257
bitcoin-cash
Bitcoin Cash (BCH) $ 116.79
internet-computer
Internet Computer (ICP) $ 4.85
filecoin
Filecoin (FIL) $ 4.87
lido-dao
Lido DAO (LDO) $ 2.35
true-usd
TrueUSD (TUSD) $ 0.999942
aptos
Aptos (APT) $ 9.04
quant-network
Quant (QNT) $ 117.68
hedera-hashgraph
Hedera (HBAR) $ 0.050984
arbitrum
Arbitrum (ARB) $ 1.23
crypto-com-chain
Cronos (CRO) $ 0.059855
near
NEAR Protocol (NEAR) $ 1.64
vechain
VeChain (VET) $ 0.020021
the-graph
The Graph (GRT) $ 0.129658
apecoin
ApeCoin (APE) $ 3.16
algorand
Algorand (ALGO) $ 0.153020
the-sandbox
The Sandbox (SAND) $ 0.576055
eos
EOS (EOS) $ 0.922668
paxos-standard
Pax Dollar (USDP) $ 0.999785
render-token
Render (RNDR) $ 2.75
frax
Frax (FRAX) $ 0.999863
elrond-erd-2
MultiversX (EGLD) $ 38.65
optimism
Optimism (OP) $ 1.51