Bitcoin gained above the $39,000 resistance against the US Dollar. BTC even tested $40,000 and may continue to rise in the near term.
- Bitcoin started a nice increase above the $38,800 and $39,000 resistance levels.
- The price is now trading above $39,000 and the 100 hourly simple moving average.
- There was a break above the major downtrend line with resistance near $38,475 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may attempt further gains above $40,000 and $40,300.
Bitcoin price is going up
Bitcoin price formed a strong base above the $37,500 level. BTC started steadily increasing and managed to clear $38,500 resistance area.
There was a break above the major downtrend line with resistance near $38,475 on the hourly chart of the BTC/USD pair. The pair settled above $39,000 and 100-hour simple moving average. Finally, there was a rally above the $40,000 resistance area.
A top was formed near $40,029 and the price is now consolidating its gains. It is trading above the 23.6% Fib retracement level of the latest wave from the $37.507 swing low to $40.029.
Source: BTCUSD on TradingView.com
On the upside, Bitcoin price is now facing resistance near the $40,000 level. The next major resistance might be near the $40,300 area. A close above the $40,300 resistance could lift market sentiment. In the mentioned case, the price may rise steadily towards the $41,000 level. The next major resistance is near $41,500.
Supporting Bitcoin dips?
If Bitcoin fails to clear the $40,000 resistance area, it may start a downside correction. There is immediate support on the downside near the $39,500 level. The next major support appears near the $39,000 level (the last breakout area).
Any further losses may require a test of the 50% Fib retracement level of the latest wave of the swing low at $37.507 to $40.029. A break-down below the $38,750 support level could put pressure on the short-term bulls. The next major support is $38,500 and the 100 hourly simple moving average.
Hourly MACD The MACD is slowly losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level.
Key support levels – $39,500, followed by $39,000.
Key resistance levels – $40,000, $40,300, and $41,000.