TA: Bitcoin Resumes Rally, Why BTC Could Accelerate Above $40K

Bitcoin price found support near $36,400 and it started a fresh increase against the US Dollar. BTC is showing positive signs and it could rally further above $40,000.

  • Bitcoin remained well bid above the $36,400 and $36,500 support levels.
  • The price is now trading well above $37,000 and the 100 hourly simple moving average.
  • There is a crucial bullish trend line forming with support near $36,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to gain bullish momentum above the $40,000 resistance zone in the near term.

Bitcoin Price Gains Pace

Bitcoin price corrected lower from the $40,000 resistance zone. BTC declined below the $38,000 support level, but it remained well above the 100 hourly simple moving average.

The bulls were active near the $36,400 and $36,500 support levels. A low was formed near $36,403 and the price is now rising. It broke the $37,000 and $38,000 levels. There was a clear break above the 50% Fib retracement level of the downward move from the $40,520 swing high to $36,400 swing low.

It is now trading well above $37,000 and the 100 hourly simple moving average. Bitcoin seems to be positioned nicely above the 76.4% Fib retracement level of the downward move from the $40,520 swing high to $36,400 swing low.

Bitcoin Price

Source: BTCUSD on TradingView.com

There is also a crucial bullish trend line forming with support near $36,800 on the hourly chart of the BTC/USD pair. On the upside, an initial resistance is near the $40,000 level. The first major resistance is near the $40,500 level. A successful break and close above the $40,500 level could spark a steady increase towards the $42,000 level in the near term.

Dip Limited in BTC?

If bitcoin fails to climb above the $40,000 and $40,500 resistance levels, it could start another downside correction. An initial support on the downside is near the $39,200 level.

The first major support is now near the $38,800 zone. A clear downside break below the $38,800 support might call for a move towards the $37,500 level. The next major support is near the $37,000 zone.

Technical indicators:

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

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

Major Support Levels – $39,200, followed by $38,800.

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

Publication date: 
07/28/2021 - 03:08
Author: 
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.