Bitcoin initiated a robust uptrend, surpassing the crucial $38,500 resistance zone. Over the past few sessions, BTC exhibited a remarkable surge of over 10%, overcoming numerous obstacles around the $40,000 mark.
The rally extended beyond the $41,200 resistance, reaching above the $42,000 threshold and establishing a new peak for the past several months at approximately $42,415. Presently, the market is undergoing a corrective phase after a slight dip below the $42,000 level. The current testing zone involves the 23.6% Fibonacci retracement level, measured from the low swing at $39,360 to the recent high at $42,415.
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Bitcoin continues to trade above $41,200 and the 100-hourly Simple Moving Average, indicating a positive trend. Additionally, a significant bullish trend line is taking shape, providing support for around $40,880 on the BTC/USD hourly chart. This trend line aligns closely with the 50% Fibonacci retracement level derived from the upward movement spanning from the $39,360 swing low to the $42,415 high.
In terms of resistance, the immediate hurdle is near the $42,200 level, followed by a more substantial barrier forming around $42,500. Surpassing this level may propel the price towards the $43,200 mark.
A breakthrough beyond the $43,200 resistance could potentially drive the price even higher, with the subsequent key resistance anticipated at around $44,000. Further upward momentum might lead BTC toward the $45,000 level.
Contingent upon Bitcoin‘s ability to breach the $42,200 resistance zone, there is a possibility of a downside correction. Immediate support is expected around the $41,200 level, followed by a more significant support zone near $40,800 and the associated trend line. Should the price dip below $40,800, there is an increased risk of further downward movement, potentially reaching the $40,000 support level in the short term.
Bitcoin Price Movement | Levels/Indicators |
---|---|
Strong increase above $38,500 | Resistance Zone |
Over 10% gain in the past sessions | $40,000 Hurdle |
Breaks $41,200 resistance | Spikes above $42,000 |
Forms multi-month high at $42,415 | Correcting gains after dipping below $42,000 |
Testing 23.6% Fib retracement | 100-hourly Simple Moving Average |
Trades above $41,200 | Bullish trend line near $40,880 |
Major bullish trend line at $40,880 | Immediate resistance at $42,200 |
50% Fib retracement at $40,880 | First major resistance near $42,500 |
Immediate support at $41,200 | Potential rise towards $43,200 on further breakthrough |
Next major support at $40,800 | Key resistance levels at $44,000 and $45,000 |
Downside risk below $40,800 | Possibility of a downside correction |
Potential drop towards $40,000 |