Bitcoin Bounce-off Above $41K – Quick Daily Outlook
Bitcoin began a downward correction against the US dollar below $41,200. BTC must remain above the $40,000 support level to begin a new
Bitcoin began a downward correction against the US dollar below $41,200. BTC must remain above the $40,000 support level to begin a new increase. BITCOIN has begun a downward correction below the $41,200 support level.
The price is currently trading below $41,400 as well as the 100 hourly simple moving average.
On the hourly chart of the BTC/USD pair, a key contracting triangle is forming with resistance near $41,400. The pair must stay above the $40,000 support level to stay in the green.
Bitcoin’s Price is Consolidating
After failing to break through the $42,500 resistance level, Bitcoin’s price fell. BTC fell below $42,000, entering a bearish zone in the short term. The price fell sharply below the $41,500 support level and the 100 hourly simple moving average. The decline accelerated below the $41,200 support level. Finally, it tested the key increase’s 50% Fib retracement level from the swing low of $38,808 to the high of $42,368.
Above the $40,500 support level, the bulls were active. On the hourly chart of the BTC/USD pair, a key contracting triangle is forming with resistance near $41,400.
On the upside, the price is encountering resistance near the $41,400 level and the triangle zone. The 100 hourly simple moving average is also close to the triangle resistance and $41,400. The next significant resistance level could be around $41,500. A successful break and close above the $41,500 level could signal the start of a steady rise.
In the scenario above, the price could rise to $42,000. Any further gains could spark a new rally towards the critical $42,500 level in the near term.
BTC Downside Break?
If Bitcoin fails to break through the $41,500 resistance level, it may continue to fall. On the downside, immediate support is near the $40,800 level.
The next significant support can be found near the $40,500 level. The main support is located near the $40,000 mark. It is close to the 61.8 percent Fib retracement level of the key increase from the swing low of $38,808 to the high of $42,368. If the price falls below the $40,000 support level, it could fall as low as $38,800.
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