Bitcoin gained momentum above the $39,000 resistance. BTC even tested $40,000 and it may continue to rise in the near term, according to technical analysis by NewsBTC’s Aayush Jindal.
Bitcoin Rises
Bitcoin formed a strong base above the $37,500 level and started a decent uptrend. BTC managed to surpass the $38,500 resistance zone. There was a break above a major bearish trend line with resistance near $38,475 on the hourly chart of the BTC/USD pair. The pair settled above $39,000 and the 100 hourly simple moving average. It even broke above the $40,000 resistance zone. A top was formed near $40,029 and the price is now consolidating gains. It is trading well above the 23.6% Fib retracement level of the recent wave from the $37,507 low to $40,029 high.
Bitcoin is currently facing resistance near the $40,000 level. The next key resistance could be near the $40,300 area. A close above the $40,300 resistance could increase market sentiment. In the stated case, the price could rise nicely towards the $41,000 level. The next major resistance is near $41,500.
Are Drops Limited?
Jindal says that if Bitcoin fails to break past the $40,000 resistance zone, it could start a downside correction. An immediate support is near the $39,500 level. The next major support is seen near the $39,000 level (the last breakout zone).
Further losses may require testing the 50% Fib retracement level of the last wave from the $37,507 high to $40,029 high. A downside break below the $38,750 support could put pressure on the bulls in the short term. The next major support could be $38,500 and the 100 hourly simple moving average.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is slowly losing momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 60 level.
- Major Support Levels – 39,500 then $39,000
- Major Resistance Levels – $40,000, 40,300 and 41,000
