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TA: Bitcoin Price Breakout Suggests A Short-term Trend Change

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Bitcoin gained pace above the $39,000 resistance against the US Dollar. BTC even tested $40,000 and might continue to rise in the near term.

  • Bitcoin started a decent increase above the $38,800 and $39,000 resistance levels.
  • The price is now trading above $39,000 and the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $38,475 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair might attempt more upsides above the $40,000 and $40,300 levels.

Bitcoin Price Breaks Higher

Bitcoin price formed a strong base above the $37,500 level. BTC started a steady increase and was able to clear the $38,500 resistance zone.

There was a break above a major bearish trend line with resistance near $38,475 on the hourly chart of the BTC/USD pair. The pair settled above the $39,000 and the 100 hourly simple moving average. Finally, there was a spike above the $40,000 resistance zone.

A high is formed near $40,029 and the price is now consolidating gains. It is trading well above the 23.6% Fib retracement level of the recent wave from the $37,507 swing low to $40,029 high.

Bitcoin Price

Source: BTCUSD on TradingView.com

On the upside, bitcoin price is now facing resistance near the $40,000 level. The next key resistance could be near the $40,300 zone. A close above the $40,300 resistance could lift the market sentiment. In the stated case, the price could rise steadily towards the $41,000 level. The next major resistance is near $41,500.

Dips Supported in BTC?

If bitcoin fails to clear the $40,000 resistance zone, it could start a downside correction. An immediate support on the downside is near the $39,500 level. The next major support is seen near the $39,000 level (the recent breakout zone).

Any more losses might call for a test of the 50% Fib retracement level of the recent wave from the $37,507 swing low to $40,029 high. A downside break below the $38,750 support might put pressure on the bulls in the short-term. The next major support is $38,500 and the 100 hourly simple moving average.

Technical indicators:

Hourly MACD – The MACD is slowly losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level.

Major Support Levels – $39,500, followed by $39,000.

Major Resistance Levels – $40,000, $40,300 and $41,000.

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