Bitcoin broke above the $42,000 level against the US Dollar again. BTC is showing positive signs and could rally further above $42,200.
- Bitcoin remained well supported above the $41,000 and $41,100 levels.
- The price is now trading above $41,500 and the 100 hourly simple moving average.
- A key bullish trend line is forming with support near $41,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might start a strong upward move if it settles above the $42,000 resistance zone.
Bitcoin price is accelerating
Bitcoin price extended the rise above the $41,500 resistance zone. BTC even broke through the $42,000 resistance zone and settled above the 100 hourly simple moving average.
A high was formed near $42,235 before the price began a downward correction. There was a move below the $41,500 pivot level. The price even climbed 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% Fib retracement level of the recent decline from the high of $42,235 to lows of $40,900. It is now trading above $41,500 and the 100 hourly simple moving average.
There is also a key uptrend line forming with support near the pair at $41,725. An immediate resistance on the upside is near the $41,725 level.
Source: BTCUSD on TradingView.com
The 61.8% Fib retracement level of the recent decline from the $42,235 high to $40,900 high is also near the $41,725 level. The next key resistance could be $42,000. To initiate a strong upside, the price must stabilize above the $42,000 area and then clear $42,230. If the bulls are successful, the price could rise towards the $43,200 resistance zone.
Dips supported in BTC?
If bitcoin fails to clear the $42,000 resistance zone, it could trigger a downward correction. An immediate support on the downside is near the $41,250 level.
The next major support is seen near the $41,000 level and the trendline area. A break down 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 accelerating in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Main support levels – $41,250, followed by $41,000.
Main resistance levels – $41,725, $42,000 and $42,500.
