Bitcoin Price Analysis: BTC Eyes Further Gains above $42K

  • Bitcoin price started a fresh increase above the $38,000 resistance against the US Dollar.
  • The price is now trading above the $38,000 zone and the 55 simple moving average (4-hours).
  • There was a break above a major bearish trend line with resistance near $38,000 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair could correct lower, but it is likely to remain well bid near $38,500 and $38,000.

Bitcoin price is trading in a bullish zone above $38,000 against the US Dollar. BTC must surpass $41,500 and $42,000 for more upsides in the near term.

Bitcoin Price Analysis

Bitcoin price formed a base above the $35,000 level and it recently started a fresh increase. BTC broke the $36,500 resistance level to move into a positive zone.

There was a clear break above the $38,500 resistance and the 55 simple moving average (4-hours). There was also a break above a major bearish trend line with resistance near $38,000 on the 4-hours chart of the BTC/USD pair.

The pair even spiked above the $40,000 resistance zone. It traded as high as $41,393 and it is now consolidating gains. The pair corrected lower below the $40,500 level. It is now testing the 23.6% Fib retracement level of the upward move from the $34,678 low to $41,393 high.

The main support is now forming near the $38,000 level. It is close to the 50% Fib retracement level of the upward move from the $34,678 low to $41,393 high.

A downside break below $38,000 could open the doors for a move towards the $37,000 level and the 55 simple moving average (4-hours). On the upside, the price is facing resistance near the $41,000 level. The next key resistance is near the $42,000 level.

A clear break above the $42,000 level could open the doors for more upsides. The next major resistance is near the $45,000 level.

Bitcoin Price

Bitcoin Price

Looking at the chart, bitcoin price is clearly trading well above $38,000 and the 55 simple moving average (4-hours). Overall, the price could correct lower, but it is likely to remain well bid near $38,500 and $38,000.

Technical indicators

4 hours MACD – The MACD is slowly losing momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI is now well above the 50 level.

Key Support Levels – $38,500 and $38,000.

Key Resistance Levels – $41,000, $42,000 and $45,000.

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