Categories: Payment system news

TA: Bitcoin Tops Near $40K, Why BTC Remains Well Supported

Bitcoin price surged and it even spiked above the $40,000 resistance against the US Dollar. BTC is correcting gains, but it is likely to remain stable near $36,000.

  • Bitcoin started a strong increase above the $36,000 and $38,000 resistance levels.
  • The price is now trading well above $36,000 and the 100 hourly simple moving average.
  • There is a major bullish trend line forming with support near $36,100 with resistance near $31,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair correcting gains, but it is likely to find a strong support near $36,000.

Bitcoin Price Corrects Gains

Bitcoin price started a major increase after it broke the key $35,000 resistance zone. It opened the doors for a steady rise above the $36,500 level and the 100 hourly simple moving average.

The price surged above the $38,000 level and finally it spiked above the $40,000 resistance. However, the bulls struggled to keep the price above the $40,000 level. A high was formed near $40,484 and the price started a downside correction.

There was a break below the $38,500 and $38,000 level. Bitcoin even declined below the 50% Fib retracement level of the upward move from the $33,950 swing low to $40,484 high.

Source: BTCUSD on TradingView.com

The price is now consolidating near the $37,000 support zone. There is also a major bullish trend line forming with support near $36,100 with resistance near $31,250 on the hourly chart of the BTC/USD pair. On the upside, an initial resistance is near the $38,000 level.

The first major resistance is near the $38,500 level. The main resistance is still near the $40,000 zone. A successful break and close above the $40,000 level could spark additional gains in the near term.

Dip Limited in BTC?

If bitcoin fails to climb above the $38,000 and $38,500 resistance levels, it could continue to move down. An initial support on the downside is near the $36,500 level.

The first major support is now near the $36,000 zone. A clear downside break below the $36,000 support and the trend line may possibly push the price towards the $35,000 support zone in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

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

Major Support Levels – $36,500, followed by $36,000.

Major Resistance Levels – $38,000, $38,500 and $40,000.

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