Bitcoin Consolidates above $40K, Why BTC Could Surge To $50K

Aayush Jindal

Last Updated: June 11, 2024 2:12 pm

2 mins read

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Bitcoin price gained further momentum and traded to a new all-time high near $42,000 against the US Dollar. BTC is currently consolidating gains and it could surge towards $45K and $50K.

Bitcoin is trading in a strong uptrend above the $36,000 and $40,000 support levels.
The price is consolidating above $40,000, and it is well above the 100 simple moving average (4-hours).
There is a key contracting triangle forming with resistance near $41,200 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to continue higher towards the $44,000 and $45,000 levels in the near term.

Bitcoin Price Sets New ATH

In the past few days, there were additional gains in bitcoin price above the $35,000 resistance against the US Dollar. The BTC/USD pair broke many major hurdles near $36,000 and $38,000 to continue higher.

It even surged above the $40,000 level and settled well above the 100 simple moving average (4-hours). Bitcoin traded to a new all-time high at $42,068 before it started consolidating gains. There was a minor decline below $41,000 level.

The price even tested the $40,000 level. However, the bulls were able to protect the 23.6% Fib retracement level of the recent increase from the $29,995 swing low to $42,068 high.

Source: BTCUSD on TradingView.com

It seems like there is a key contracting triangle forming with resistance near $41,200 on the 4-hours chart of the BTC/USD pair. If there is an upside break above the triangle resistance and $41,500, the price is likely to resume its upward move.

An initial resistance is near the $42,068 high, above which the price is likely to gain 5%-8%. In the stated cases, the $45,000 level could be an easy target for the bulls. Any more gains might open the doors for a push towards the $50,000 zone.

Dips Supported in BTC?

If bitcoin fails to continue high above the triangle resistance, there is a risk of a downside break below $40,000. The first major support is near the $39,200.

A clear close below the $39,200 support may possibly lead the price towards the next major support at $36,000. It is close to the 50% Fib retracement level of the recent increase from the $29,995 swing low to $42,068 high.

Technical indicators

4 hours MACD – The MACD for BTC/USD is gaining momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is still well above the 60 level.

Major Support Level – $39,200

Major Resistance Level – $41,200

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.
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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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