Bitcoin Technicians Suggest Bulls Aiming Sharp Above $42K


Bitcoin continued to climb above the $42,000 level against the US dollar. BTC is showing positive signs and it could rise further above USD 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 major bullish trendline is forming with support near $41,050 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could start strong upward movement if it breaks above the USD 42,000 resistance zone.

Bitcoin Price Rising Pace

Bitcoin price extended rise above the USD 41,500 resistance zone. BTC even managed to clear the $42,000 resistance zone and settled above the 100 easy moving hourly average.

It highs formed near $42,235 before the price started a downside correction. There was a move below the $41,500 pivot level. The price even spiked 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 from its recent drop from the $42,235 swing high to $40,900 low. It is now trading above $41,500 and the 100 hourly simple moving average.

A major bullish trendline is also forming with support near $41,725USD. An immediate resistance on the upside is near the USD 41,725 ​​level.

Source: BTCUSD on TradingView.com

The 61.8% Fib retracement level from the recent drop from the $42,235 swing high to $40,900 low is also near the $41,725 ​​level. The next key resistance could be $42,000. To start a strong upward move, the price needs to break above the $42,000 zone and then clear $42,230. If the bulls succeed, the price could climb towards the $43,200 resistance zone.

Dips supported in BTC?

If bitcoin fails to clear the $42,000 resistance zone, it could trigger a downside correction. An immediate support on the downside is near the USD 41,250 level.

The next major support is seen near the $41,000 level and the trendline zone. A downward breach below the trendline could send the price towards $40,750 or the 100 hourly simple moving average.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Key support levels – $41,250, followed by $41,000.

Major resistance levels – $41,725, $42,000 and $42,500.

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