Bitcoin rises over 12%, why this could be a big trend change


Bitcoin broke through the key $40,000 resistance zone against the US dollar. BTC is up more than 12% and it could continue to rise above the $43,000 level.

Bitcoin rose above a few key hurdles near the $40,000 resistance zone. The price is trading above $42,000 and the 100 hourly simple moving average. There was a break above a major bearish trendline with resistance near $38,000 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair has moved into a bullish zone and could accelerate towards USD 45,000.

Bitcoin Price Rises

Bitcoin price remained in positive zone above the USD 38.00 pivot level. BTC was able to start a big gain after it cleared the $38,800 resistance zone.

There was a break above a major bearish trendline with resistance near $38,000 on the hourly chart of the BTC/USD pair. It opened the doors for a sharp rise above the $40,000 resistance and the 100 hourly simple moving average.

The price was up more than 10% and there was a marked move above the $42,000 resistance zone. It even managed to hit the $43,000 level and traded as low as $44,192.

Bitcoin is now consolidating and trading well above the Fib retracement level of 23.6% from the upward move from the swing low from $37,029 to $44,192 high. On the upside, there is an immediate resistance near the USD 44,000 level. The first key resistance is near the USD 44,200 level.

Source: BTCUSD on TradingView.com

The main resistance is now near the USD 44,500 level. A clear move above the $44,500 resistance could send the price higher. In the said case, it could even attempt a clear move above $45,000.

Dips limited in BTC?

If bitcoin fails to clear the $44,200 resistance zone, it could trigger a downside correction. An immediate support on the downside is near the $43,000 zone.

The next major support is seen near the USD 42,500 level. If there is a downside breach below the $42,500 support, the price could gain bearish momentum towards $40,500. It is near the 50% Fib retracement level of the upward move from the $37,029 swing low to $44,192 high.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is correcting from the overbought zone.

Key support levels – $43,000, followed by $42,500.

Major resistance levels – $44,000, $44,200 and $45,000.

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