Bitcoin regains strength, why Bulls Eye Strong rallies above $ 40,000

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The price of Bitcoin has started a further rise above the resistance zone of $ 38,500 against the US dollar. BTC even broke $ 40,000 and is now correcting the gains.

Bitcoin gained ground above the resistance levels of $ 38,500 and $ 39,500. The price is now trading above $ 40,000 and the 100 hour simple moving average. There was a break above a key downtrend line with resistance near $ 39,000 on the hourly chart of the BTC / USD pair (Kraken data feed). The pair is correcting its gains, but the bulls are expected to remain active near $ 39,000. Bitcoin price turns green

The price of Bitcoin formed a base above the $ 37,600 level and began to rise again. BTC broke through the key resistance level of $ 38,500 to move into a positive zone.

The price even broke through the resistance level of $ 39,000 and settled well above the 100 hour simple moving average. Finally, there was a break above the $ 40,000 resistance zone. There was also a break above a key downtrend line with resistance near $ 39,000 on the hourly chart of the BTC / USD pair.

The price traded as high as $ 41,395 before a downward correction. Bitcoin traded below the $ 40,500 support level. There was a break below the 23.6% Fib retracement level of the recent increase from the low of $ 37,678 to $ 41,395.

It is now consolidating near the $ 40,000 support area. On the upside, initial resistance is near the $ 40,500 level. The first key resistance is near the $ 40,750 level and a connected bearish trendline.

Source: BTCUSD on TradingView.com

Therefore, a close above the resistance area of ​​$ 40,750 and the trendline could trigger a steady rise. The next major resistance is near the $ 41,500 level. Further gains could set the tone for a move towards the resistance zone of $ 42,500 in the near term.

New decline in BTC?

If bitcoin fails to break above the resistance levels of $ 40,750 and $ 41,500, it could initiate a further downward correction. Initial bearish support is near the $ 49,000 level.

The first major support is now near the $ 39,500 area. It is near the 50% Fib retracement level of the recent increase, dropping from the low of $ 37,678 to $ 41,395. A sharp break down below the $ 39,500 support could drive the price towards the $ 38,500 support.

Technical indicators:

Hourly MACD The MACD is slowly losing steam in the bullish zone.

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

Major support levels $ 39,500, followed by $ 38,500.

Major resistance levels $ 40,500, $ 40,750 and $ 41,500.

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