HomeBitcoin NewsBitcoin Price Analysis: BTC Signaling Fresh Rally Above $40K

Bitcoin Price Analysis: BTC Signaling Fresh Rally Above $40K

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  • Bitcoin price started a fresh increase above the $35,000 resistance against the US Dollar.
  • The price is now trading well above the $35,000 zone and the 55 simple moving average (4-hours).
  • There is a key bullish trend line forming with support near $37,000 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair might correct lower, but the bulls are likely to remain active near $37,000.

Bitcoin price is slowly gaining bullish momentum above $38,000 against the US Dollar. BTC could start a major increase if there is a weekly close above $40,000.

Bitcoin Price Analysis

Bitcoin price formed a base above the $29,500 and $30,000 levels. BTC started a fresh increase above the $32,000 and $33,500 resistance levels.

The price even gained strength above the $35,000 level and the 55 simple moving average (4-hours). The bulls pumped the price above the $40,000 level, but there was no upside continuation. A high was formed near $40,470 before the price corrected gains.

It declined below $38,000, but the bulls were active above $36,500. A low was formed near $36,440 and the pair started a fresh increase. It broke the 50% Fib retracement level of the downward move from the $40,470 swing high to $36,440 low.

It is now struggling to gain pace above the $40,000 resistance. An initial support on the downside is near the $38,350 level. It is near the 50% Fib retracement level of the recent increase from the $36,440 swing low to $40,270 high.

The main support is now forming near $37,000. There is also a key bullish trend line forming with support near $37,000 on the 4-hours chart of the BTC/USD pair. On the upside, the first major resistance is near the $40,000 level. The main resistance is now forming near the $40,400 level. A close above the $40,500 zone is needed for a fresh increase.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is clearly trading well above $35,000 and the 55 simple moving average (4-hours). Overall, the price might correct lower, but the bulls are likely to remain active near $37,000 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 well above the 50 level.

Key Support Levels – $38,350 and $37,000.

Key Resistance Levels – $40,000, $40,500 and $42,000.

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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