TA: Bitcoin Tops Near $40K, Why BTC Remains Well Supported

Aayush Jindal

1 year ago

2 mins read

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Bitcoin price surged and it even spiked above the $40,000 resistance against the US Dollar. BTC is correcting gains, but it is likely to remain stable near $36,000.

Bitcoin started a strong increase above the $36,000 and $38,000 resistance levels.
The price is now trading well above $36,000 and the 100 hourly simple moving average.
There is a major bullish trend line forming with support near $36,100 with resistance near $31,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair correcting gains, but it is likely to find a strong support near $36,000.

Bitcoin Price Corrects Gains

Bitcoin price started a major increase after it broke the key $35,000 resistance zone. It opened the doors for a steady rise above the $36,500 level and the 100 hourly simple moving average.

The price surged above the $38,000 level and finally it spiked above the $40,000 resistance. However, the bulls struggled to keep the price above the $40,000 level. A high was formed near $40,484 and the price started a downside correction.

There was a break below the $38,500 and $38,000 level. Bitcoin even declined below the 50% Fib retracement level of the upward move from the $33,950 swing low to $40,484 high.

Source: BTCUSD on TradingView.com

The price is now consolidating near the $37,000 support zone. There is also a major bullish trend line forming with support near $36,100 with resistance near $31,250 on the hourly chart of the BTC/USD pair. On the upside, an initial resistance is near the $38,000 level.

The first major resistance is near the $38,500 level. The main resistance is still near the $40,000 zone. A successful break and close above the $40,000 level could spark additional gains in the near term.

Dip Limited in BTC?

If bitcoin fails to climb above the $38,000 and $38,500 resistance levels, it could continue to move down. An initial support on the downside is near the $36,500 level.

The first major support is now near the $36,000 zone. A clear downside break below the $36,000 support and the trend line may possibly push the price towards the $35,000 support zone in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $36,500, followed by $36,000.

Major Resistance Levels – $38,000, $38,500 and $40,000.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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