9.1 C
New York
Monday, March 4, 2024

Buy now

Bitcoin Regains Strength, Why Bulls Eye Strong Rally above $40K

Bitcoin price started a fresh increase above the $38,500 resistance zone against the US Dollar. BTC even broke $40,000 and it is now correcting gains.

Bitcoin gained traction above the $38,500 and $39,500 resistance levels.
The price is now trading above $40,000 and the 100 hourly simple moving average.
There was a break above a key bearish trend line with resistance near $39,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is correcting gains, but the bulls are likely to remain active near $39,000.

Bitcoin Price Turns Green
Bitcoin price formed a base above the $37,600 level and started a fresh increase. BTC broke the key $38,500 resistance level to move into a positive zone.
The price even broke the $39,000 resistance level and settled well above the 100 hourly simple moving average. Finally, there was a break above the $40,000 resistance zone. There was also a break above a key bearish trend line with resistance near $39,000 on the hourly chart of the BTC/USD pair.
The price traded as high as $41,395 before there was a downside correction. Bitcoin traded below the $40,500 support level. There was a break below the 23.6% Fib retracement level of the recent increase from the $37,678 swing low to $41,395 high.
It is now consolidating near the $40,000 support zone. On the upside, an initial resistance is near the $40,500 level. The first key resistance is near the $40,750 level and a connecting bearish trend line.

Source: BTCUSD on TradingView.com
Therefore, a close above the $40,750 resistance zone and the trend line might trigger a steady increase. The next major resistance is near the $41,500 level. Any more gains could set the pace for a move towards the $42,500 resistance zone in the near term.
Fresh Decline in BTC?
If bitcoin fails to climb above the $40,750 and $41,500 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $49,000 level.
The first major support is now near the $39,500 zone. It is near the 50% Fib retracement level of the recent increase from the $37,678 swing low to $41,395 high. A clear downside break below the $39,500 support might lead the price towards the $38,500 support.
Technical indicators:
Hourly MACD – The MACD is slowly losing 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 – $39,500, followed by $38,500.
Major Resistance Levels – $40,500, $40,750 and $41,500.

Christian Robinson
Christian Robinson
I’m a regular contributor to Forbes, CoinDesk, and Bitcoin Magazine, among others. My work focuses on providing analysis of the latest trends in the crypto industry, as well as offering insights into investment opportunities. I have a strong track record of identifying emerging technologies and assets that can achieve significant growth. As such, I believe that I am uniquely positioned to help investors navigate the ever-changing landscape of cryptocurrency.

Latest Articles

bitcoin
Bitcoin (BTC) $ 65,550.56
ethereum
Ethereum (ETH) $ 3,511.09
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 418.68
solana
Solana (SOL) $ 131.65
xrp
XRP (XRP) $ 0.658003
staked-ether
Lido Staked Ether (STETH) $ 3,507.48
usd-coin
USDC (USDC) $ 1.00
cardano
Cardano (ADA) $ 0.784250
dogecoin
Dogecoin (DOGE) $ 0.163757
avalanche-2
Avalanche (AVAX) $ 43.54
shiba-inu
Shiba Inu (SHIB) $ 0.000027
polkadot
Polkadot (DOT) $ 10.05
tron
TRON (TRX) $ 0.141128
chainlink
Chainlink (LINK) $ 20.50
matic-network
Polygon (MATIC) $ 1.10
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 65,387.52
uniswap
Uniswap (UNI) $ 12.92
the-open-network
Toncoin (TON) $ 2.75
bitcoin-cash
Bitcoin Cash (BCH) $ 447.08
litecoin
Litecoin (LTC) $ 89.99
internet-computer
Internet Computer (ICP) $ 13.19
filecoin
Filecoin (FIL) $ 9.93
dai
Dai (DAI) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 34.10
cosmos
Cosmos Hub (ATOM) $ 12.52
near
NEAR Protocol (NEAR) $ 4.52
immutable-x
Immutable (IMX) $ 3.25
leo-token
LEO Token (LEO) $ 4.86
aptos
Aptos (APT) $ 12.04
blockstack
Stacks (STX) $ 3.02
stellar
Stellar (XLM) $ 0.147206
bittensor
Bittensor (TAO) $ 632.96
hedera-hashgraph
Hedera (HBAR) $ 0.117458
optimism
Optimism (OP) $ 3.89
crypto-com-chain
Cronos (CRO) $ 0.146675
kaspa
Kaspa (KAS) $ 0.163455
vechain
VeChain (VET) $ 0.050624
injective-protocol
Injective (INJ) $ 39.68
okb
OKB (OKB) $ 57.72
first-digital-usd
First Digital USD (FDUSD) $ 1.00
pepe
Pepe (PEPE) $ 0.000007
the-graph
The Graph (GRT) $ 0.311648
lido-dao
Lido DAO (LDO) $ 3.27
mantle
Mantle (MNT) $ 0.891245
render-token
Render (RNDR) $ 7.41
monero
Monero (XMR) $ 147.85
celestia
Celestia (TIA) $ 15.78
arbitrum
Arbitrum (ARB) $ 2.00
bonk
Bonk (BONK) $ 0.000037