Bitcoin price started a fresh increase above the $40,000 zone 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 $38,000 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
The pair is now facing a major resistance near $45,000 and might correct lower.
Bitcoin price gained pace above $40,000 against the US Dollar. BTC even spiked above $45,000 and is currently correcting gains.
Bitcoin Price Analysis
Bitcoin price started a fresh increase after it found support near the $36,000 zone. BTC formed a base and moved above the $37,500 resistance to start a steady recovery.
There was a clear move above the $38,000 resistance and the 55 simple moving average (4-hours). Besides, 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.
The pair even surged above the $42,000 resistance. However, the bears appeared near the $45,520 zone. A high is formed near $45,519 and the price is now consolidating gains.
There was a move below the 23.6% Fib retracement level of the recent increase from the $36,264 swing low to $45,519 high. It is now consolidating near the $43,500 level. An immediate resistance is near the $44,200 level. The next major resistance on the upside is near the $45,500 level.
To start another increase, the price must settle above the $45,500 level in the near term. If not, there might be a downside correction below $43,000. The next key support is near the $41,000 level.
The 50% Fib retracement level of the recent increase from the $36,264 swing low to $45,519 high is also near the $41,000 level. If the price fails to stay above $41,000, it could extend losses in the near term. The next major support sits near $40,000, below which there is a risk of a move towards the $38,000 level.
Looking at the chart, bitcoin price is clearly trading above $40,000 and the 55 simple moving average (4-hours). Overall, the price is now facing a major resistance near $45,000 and might correct lower.
4 hours MACD – The MACD is now losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is now above the 50 level.
Key Support Levels – $43,000 and $41,000.
Key Resistance Levels – $44,200, $45,500 and $48,000.
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