TA: Bitcoin Resumes Rally, Why BTC Could Accelerate Above $40K
Bitcoin price found support near $36,400 and it started a fresh increase against the US Dollar. BTC is showing positive signs and it could rally further above $40,000.
Bitcoin remained well bid above the $36,400 and $36,500 support levels. The price is now trading well above $37,000 and the 100 hourly simple moving average. There is a crucial bullish trend line forming with support near $36,800 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to gain bullish momentum above the $40,000 resistance zone in the near term.Bitcoin Price Gains Pace
Bitcoin price corrected lower from the $40,000 resistance zone. BTC declined below the $38,000 support level, but it remained well above the 100 hourly simple moving average.
The bulls were active near the $36,400 and $36,500 support levels. A low was formed near $36,403 and the price is now rising. It broke the $37,000 and $38,000 levels. There was a clear break above the 50% Fib retracement level of the downward move from the $40,520 swing high to $36,400 swing low.
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There is also a crucial bullish trend line forming with support near $36,800 on the hourly chart of the BTC/USD pair. On the upside, an initial resistance is near the $40,000 level. The first major resistance is near the $40,500 level. A successful break and close above the $40,500 level could spark a steady increase towards the $42,000 level in the near term.
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If bitcoin fails to climb above the $40,000 and $40,500 resistance levels, it could start another downside correction. An initial support on the downside is near the $39,200 level.
The first major support is now near the $38,800 zone. A clear downside break below the $38,800 support might call for a move towards the $37,500 level. The next major support is near the $37,000 zone.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Levels – $39,200, followed by $38,800.
Major Resistance Levels – $40,000, $40,500 and $42,000.