Bitcoin corrects losses and trades above $41,000 against the US Dollar. BTC could gain bullish momentum above $41,350 and $41,500.
- Bitcoin stayed in good shape above $39,250 and started a fresh increase.
- The price is now trading above $41,000 and the 100 hourly simple moving average.
- There was a break above the descending trend line connected with resistance near $40,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could gain pace if there is a clear move above the $41,500 resistance area.
Breaking the eyes of the Bitcoin price upside down
Bitcoin price keep trying Above the $39,250 support area. BTC formed a base and started a new increase above the $40,000 resistance area.
The bulls gained steam and managed to push the price above $40,500. There was a move above the 23.6% Fib retracement level of the major decline from the $43,415 swing high, from the $39,240 low. Besides, there was a break above the connecting descending trend line with resistance near $40,000 on the hourly chart of the BTC/USD pair.
The pair even broke the $41,000 resistance area and settled above 100-hour simple moving average. There is immediate resistance on the upside near the $41,350 level.
The 50% Fib retracement level of the major decline from the $43,415 swing high from the $39,240 low is also near the $41,350 region. The next major resistance could be $41,500. If the bulls manage to surpass the $41,350 and $41,500 resistance levels, the price could accelerate higher.
Source: BTCUSD on TradingView.com
In the mentioned case, the price may rise towards the $41,800 resistance area. Any further gains could set the pace for a move towards the $42,500 level in the near term.
Another drop in bitcoin?
If Bitcoin fails to clear the $41,500 resistance area, it may start dropping again. There is immediate support on the downside near the $41,000 level.
The next major support is seen near the $40,550 level. A downside breakout below the $40,550 support area could accelerate losses. In the mentioned case, the price could drop towards the $40,000 level or even $39,250.
Hourly MACD – The MACD is now gaining pace in bullish territory.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Key support levels – $41,000, followed by $40,550.
Key resistance levels – $41,350, $41,500 and $41,800.