Bitcoin extended its recovery above the $41,400 against the US Dollar. BTC could rally further if there is a clear close above the $41,500 and $41,800.
Bitcoin started a decent recovery wave above the $41,000 and $41,400 levels.
The price is now trading above $41,000 and the 100 hourly simple moving average.
There is a short-term contracting triangle forming with resistance near $41,510 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair must clear the $41,500 resistance and $41,800 to start a major upward move.
Bitcoin Price Shows Positive Signs
Bitcoin price formed a base above the $40,000 level. BTC started a decent recovery wave and was able to clear the $41,000 resistance zone.
The price remained in a positive zone and climbed further above the $41,400 level. It even spiked above the $41,500 resistance and settled above the 100 hourly simple moving average. A high was formed near the $41,825 level and the price is now consolidating gains.
Bitcoin is trading well above the 23.6% Fib retracement level of the recent wave from the $38,570 swing low to $41,825 high. There is also a short-term contracting triangle forming with resistance near $41,510 on the hourly chart of the BTC/USD pair.
An immediate resistance on the upside is near the $41,500 level. The next key resistance could be $41,800. To start a strong upward move, the price must settle above the $41,500 zone and then clear $41,800. If the bulls succeed, the price could rise towards the $42,500 resistance zone. Any more gains might call for a move towards the $43,200 level.
Dips Limited in BTC?
If bitcoin fails to clear the $41,500 resistance zone, it could start a downside correction. An immediate support on the downside is near the $41,050 level.
The next major support is seen near the $40,400 level and the 100 hourly simple moving average. It is near the 50% Fib retracement level of the recent wave from the $38,570 swing low to $41,825 high. A downside break below the $40,400 support zone and $40,000 could increase selling pressure.
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.
Major Support Levels – $41,050, followed by $40,200.
Major Resistance Levels – $41,510, $41,800 and $42,500.
