Bitcoin Technicals Suggest Bulls Aim Sharp Move Above $42K


Bitcoin rose further above the $42,000 level against the US Dollar. BTC is showing positive signs and may rise further above $42,200.

  • Bitcoin remains well supported above the $41,000 and $41,000 levels.
  • The price is now trading above $41,500 and the 100 hourly simple moving average.
  • There is a major bullish trend line forming with support near $41,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair may start a strong upward movement if it settles above the $42,000 resistance area.

Bitcoin price hike

Bitcoin price Extended increase Above the $41,500 resistance area. BTC cleared the $42,000 resistance area and settled above the 100 hourly simple moving average.

A top formed near $42,235 before the price started correcting to the downside. There was a move below the $41,500 pivot level. The price rose below the $41,000 level, but found support near the $40,900 level.

A new base has been formed and the price is now back above $41,500. Bitcoin climbed above the 50% Fibonacci retracement level of the recent decline from $42,235 to a high of $40,900. It is now trading above $41,500 and 100-hour simple moving average.

There is also a major uptrend line forming with support near $41725 for the pair. There is immediate resistance on the upside near the $41.725 level.

Bitcoin price

Source: BTCUSD on TradingView.com

The 61.8% Fib retracement level of the recent decline from the $42,235 high to $40,900 is also near the $41,725 ​​level. The next major resistance might be $42,000. To start a strong bullish move, the price must settle above the $42,000 area and then clear $42,230. If the bulls succeed, the price could rise towards the $43,200 resistance area.

Supporting Bitcoin dips?

If Bitcoin fails to break above the $42,000 resistance area, it may initiate a downward correction. There is immediate support on the downside near the $41,250 level.

The next major support is seen near the $41,000 level and the trend line area. A downside breakout below the trend line could send the price to $40,750 or the 100 hourly simple moving average.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Key support levels – $41.250, followed by $41,000.

The key resistance levels are $41.725, $42,000, and $42,500.



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