- Bitcoin surged above several key barriers near the $40,000 resistance zone.
- The price is above $42,000 and the 100-hour simple moving average.
- The key bearish trend line was broken on the hourly chart of the BTC/USD pair, with resistance around $38,000 (from Kraken data).
- The pair has entered bullish territory and could accelerate up to $45,000.
Bitcoin prices soar
Bitcoin price is holding in positive territory above the $38,00 pivot point. BTC was able to start rising sharply after breaking the $38,800 resistance zone.
On the hourly chart of the BTC/USD pair, the key bearish trend line was broken with resistance near $38,000. It opens the door to a sharp rise above the $40,000 resistance and the 100-hour simple moving average.
The price rose more than 10% and clearly broke through the $42,000 resistance level. It even broke above the $43,000 level and traded as high as $44,192.
Bitcoin is consolidating right now, trading well above the 23.6% Fib retracement of the swing low from $37,029 to the high of $44,192. On the bright side, immediate resistance is around $44,000. The first key resistance level is around $44,200.
Source: BTCUSD on TradingView.com
The main resistance level is now around $44,500. A clear break of the $44,500 resistance could lead to further price gains. In the above case, it could even try to break definitively above $45,000.
Bitcoin's low limit?
If Bitcoin fails to break above the $44,200 resistance zone, it could begin a downside correction. Immediate support on the downside is around $43,000.
The next major support level is around $42,500. If the support level at $42,500 is broken, the price could be bearish towards $40,500. It is close to the 50% Fib retracement of the move up from the swing low of $37,029 to the high of $44,192.
Hourly MACD – MACD is now losing pace in bullish territory.
Hourly RSI (Relative Strength Index) – The RSI of BTC/USD is correcting from overbought territory.
The main support level – $43,000, then $42,500.
Major resistance levels – $44,000, $44,200 and $45,000.