Bitcoin has experienced a more than 5% increase, breaching the $40,000 resistance level. The upward momentum suggests the potential for further ascent, with a possible target set towards the $42,000 resistance.
Having surpassed the $38,500 resistance zone, Bitcoin’s price is currently above $40,000 and the 100 hourly Simple Moving Average. The hourly chart of the BTC/USD pair, based on data from Kraken, reveals the formation of a connecting bullish trend line with support around $40,100. This pattern indicates a favorable outlook, and there’s a likelihood that the pair will extend its climb towards the $42,000 resistance.
Bitcoin Surpasses the $40,000 Mark
Bitcoin exhibited strength by successfully clearing the $38,500 resistance zone, with bullish momentum persisting to overcome the $39,500 resistance. Eventually, the cryptocurrency surged above the crucial $40,000 resistance, marking a remarkable 5% increase and establishing a new multi-month high around $40,890.
Presently, the price is consolidating its gains above the 23.6% Fibonacci retracement level, calculated from the recent upswing between the $39,360 swing low and the $40,890 high. Bitcoin remains above $40,000 and the 100-hourly Simple Moving Average, accompanied by a forming bullish trend line with support near $40,100 on the BTC/USD pair’s hourly chart. This trend line closely aligns with the 50% Fibonacci retracement level from the recent surge.
Looking ahead, immediate resistance is anticipated around the $40,850 level, followed by a significant hurdle near $41,200. Further breakthroughs could propel the price towards the $41,500 level, indicating an optimistic trajectory for Bitcoin.
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If the price manages to secure a close above the $41,500 resistance, it has the potential to extend its upward trajectory. The subsequent significant resistance level to watch for is around $42,000, and a successful breach beyond this point may pave the way for Bitcoin to ascend towards the $42,400 level.
Is there support for declines in BTC?
Should Bitcoin fail to surpass the $40,850 resistance zone, a potential downward correction might ensue. Immediate support on the downside is anticipated near the $40,500 level.
The subsequent significant support lies around $40,000 and the established trend line. A breach below the $40,000 threshold poses a risk of further downward movements. In such a scenario, there’s a possibility of the price declining towards the near-term support at $39,720.
Technical Indicators:
- Hourly MACD – The MACD is currently gaining momentum within the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD has crossed above the 50 level.
Major Support Levels – $40,500, followed by $40,000.
Major Resistance Levels – $40,850, $41,200, and $42,000.