Bitcoin Bounces Off $40K Support – What’s Next?
Bitcoin is recouping losses and trading above $41,000 per US dollar. BTC may gain bullish momentum if it rises above $41,350 and $41,500.
Bitcoin is recouping losses and trading above $41,000 per US dollar. BTC may gain bullish momentum if it rises above $41,350 and $41,500. Bitcoin remained well bid above $39,250 and began a new rise. Currently, the price is trading above $41,000 and above the 100-hourly simple moving average.
On the hourly chart of the BTC/USD pair, there was a break above a connecting bearish trend line with resistance near $40,000. The pair could pick up speed if there is a clear move above the $41,500 resistance zone.
Bitcoin Price Sees a Break to the Upside
Bitcoin’s price has remained well above the $39,250 support level. BTC formed a base and began a new uptrend above the $40,000 resistance zone. The bulls gained strength and pushed the price above $40,500.
There was a move above the 23.6 percent Fib retracement level of the main drop from the swing high of $43,415 to the low of $39,240. Furthermore, on the hourly chart of the BTC/USD pair, there was a break above a connecting bearish trend line with resistance near $40,000.
The pair even broke through the $41,000 resistance level and closed above the 100-hourly simple moving average. On the upside, immediate resistance is near the $41,350 level.
The main drop’s 50% Fib retracement level from the $43,415 swing high to the $39,240 low is also close to the $41,350 zone. The next significant resistance level could be $41,500. If the bulls can break through the $41,350 and $41,500 resistance levels, the price could surge higher.
In the scenario above, the price may rise towards the $41,800 resistance zone. Any further gains could set the stage for a move towards $42,500 in the near term.
Another Drop in BTC?
If bitcoin fails to break through the $41,500 resistance level, it may begin a new decline. On the downside, immediate support is near the $41,000 level.
The next significant support can be found near the $40,550 level. A break below the $40,550 support level could hasten losses. In the aforementioned scenario, the price could fall to $40,000 or even $39,250. Good Luck!
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