Technical breakout indicates that Bitcoin might rally again above $40,000.
Bitcoin price holds gains over the $38,000 pivot level versus the US Dollar. BTC signals even more gains over the $40,000 resistance zone in the near future.
Positive signs are shown by Bitcoin over the $37,000 and $38,000 resistance levels.
The price trades properly by Bitcoin over the $37,000 zone and the 100 hourly simple moving average.
There has been a break above a contracting triangle with a resistance around $38,000 on the hourly chart of the BTC/USD pair.
The pair could accelerate even higher than the $39,500 and $40,000 resistance levels.
Bitcoin price aims to get back up
BTC dipped lower after challenging the $40,000 resistance zone. It declined lower than $38,000. But then it is still supported around the $37,000 zone and the 100 hourly simple moving average.
A drop has been formed around $36,500 and the price has started a newer increase. It broke the $37,000 and $38,000 resistance levels. There has been a break above the 50% Fib retracement level of the recent decline from the $40,155 swing high to $36,508 swing low.
Also, there has been a break above a key contracting triangle with a resistance around $38,000 on the BTC/USD pair’s hourly chart. The pair now trades above the $37,000 zone and the 100 hourly simple moving average.
A quick resistance is around the 76.4% Fib retracement level of the current decline from the $40,155 swing high to $36,508 swing low. The major resistance remains to be near the $40,000 one. An apparent upside break over the $40,000 resistance zone might spark a strong upward movement.
The upcoming major resistance is around the $42,000 level. And any more gains can open the doors for a bigger recovery to the $45,000 level.
Are Dips Supported in Bitcoin?
If ever Bitcoin fails to break the $40,000 resistance, there will be a risk of another correction downwards. A basic support on the downside is around the $38,200 level.
The initial major support remains near the $37,000 zone and the 100 hourly simple moving average. If in instance there will be a downside break lower than the $37,000 support, then the price could drop to the $35,000 support zone in the future term.
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