HomeBitcoin NewsBitcoin Price Analysis: BTC Gains Pace Above $42K

Bitcoin Price Analysis: BTC Gains Pace Above $42K

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  • Bitcoin price started a fresh increase from the $37,150 support against the US Dollar.
  • The price is now trading above $40,000 and the 55 simple moving average (4-hours).
  • There was a break above a major bearish trend line with resistance near $39,120 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair must clear $42,250 and then $43,000 to continue higher in the near term.

Bitcoin price climbed higher above the $40,000 resistance against the US Dollar. BTC even spiked $40,800 and might continue to rise in the near term.

Bitcoin Price Analysis

Bitcoin price formed a base above the $37,150 level. As a result, BTC started a major increase and broke many hurdles near the $39,000 level.

There was a break above a major bearish trend line with resistance near $39,120 on the 4-hours chart of the BTC/USD pair. The pair even climbed above the $40,000 zone and the 55 simple moving average (4-hours). There was a clear move above the $41,000 level.

The price surpassed the 50% Fib retracement level of the key decline from the $45,426 swing high to $37,161 swing low. On the upside, an immediate resistance is near the $42,250 level.

The 61.8% Fib retracement level of the key decline from the $45,426 swing high to $37,161 swing low is also near $42,250. The next major resistance on the upside is near the $43,000 level. To start another increase, the price must settle above the $43,000 level in the near term.

The next major resistance could be $44,750, above which the price could rise to $45,500. If there is no upside break, the price might start a decline below the $41,000 level.

The next key support is near the $40,000 level, below which there is a risk of a move towards the $39,150 level. Any more losses might call for a test of the key $37,150 support zone.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is clearly trading above $40,000 and the 55 simple moving average (4-hours). Overall, the price must clear $42,250 and then $43,000 to continue higher in the near term.

Technical Indicators

4 hours MACD – The MACD is now gaining momentum in the bullish zone.

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

Key Support Levels – $41,000 and $40,000.

Key Resistance Levels – $42,250, $43,000 and $44,750.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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