Bitcoin regaining strength, why the crypto market could rally in the short term

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The price of Bitcoin has remained well above the $ 40,750 support against the US dollar. BTC appears to be bottoming near $ 40,750 and it could start a strong rally.

Bitcoin recovered above resistance levels of $ 41,500 and $ 42,000. The price is now trading above $ 42,500 and the 100 hour simple moving average. There was a break above a key downtrend line with resistance near $ 42,200 on the hourly chart of the BTC / USD pair (Kraken data feed). The pair could accelerate even higher towards the resistance area of ​​$ 44,200 in the near term. Bitcoin price gaining pace

The price of Bitcoin has remained high above the support level of $ 40,750. As a result, BTC started a further rise above the resistance level of $ 41,500. There was a clear break above the $ 42,000 level and the 100 hour simple moving average.

Additionally, there was a break above a key downtrend line with resistance near $ 42,200 on the hourly chart of the BTC / USD pair. The pair climbed above the 50% Fib retracement level of the key decline from a high of $ 44,325 to a low of $ 40,771.

Bitcoin is now trading above $ 42,500 and the 100-hour simple moving average. On the upside, immediate resistance is near the $ 43,200 level.

Source: BTCUSD on TradingView.com

The first major resistance is near the $ 43,500 level. It is near the 76.4% Fib retracement level of the key decline from the high of $ 44,325 to the low of $ 40,771. The next major resistance is near the $ 44,350 level, above which the price may accelerate higher. In the case indicated, it could test the resistance of $ 45,500.

New decline of BTC?

If bitcoin fails to clear the $ 43,500 resistance zone, it could start a further downward correction. Immediate downside support is near the $ 42,800 level.

The first major support is now forming near the $ 42,500 level and the 100 hour simple moving average. A break below the $ 42,500 level could push the price towards the $ 41,500 level. The main breakout support is still near the $ 40,750 area, below which there could be a steep decline in the near term.

Technical indicators:

Hourly MACD The MACD is now accelerating in the bullish zone.

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

Major support levels $ 42,500, followed by $ 41,500.

Major resistance levels $ 43,500, $ 44,350 and $ 45,500.

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