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Wednesday, February 21, 2024

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Technical Breakout Suggests BTC Could Rally Above $40K

Bitcoin price is holding gains above the $38,000 pivot level against the US Dollar. BTC is signaling more gains above the $40,000 resistance zone in the near term.

Bitcoin is showing positive signs above the $37,000 and $38,000 resistance levels.
The price is trading nicely above the $37,000 zone and the 100 hourly simple moving average.
There was a break above a key contracting triangle with resistance near $38,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to accelerate higher above the $39,500 and $40,000 resistance levels.

Bitcoin Price Aims Upside Break
Bitcoin corrected lower after testing the $40,000 resistance zone. BTC declined below $38,000, but it remained supported near the $37,000 zone and the 100 hourly simple moving average.
A low was formed near $36,500 and the price started a fresh increase. It broke the $37,000 and $38,000 resistance levels. There was a break above the 50% Fib retracement level of the recent decline from the $40,155 swing high to $36,508 swing low.
There was also a break above a key contracting triangle with resistance near $38,000 on the hourly chart of the BTC/USD pair. The pair is now trading nicely above the $37,000 zone and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com
An immediate resistance is near the 76.4% Fib retracement level of the recent decline from the $40,155 swing high to $36,508 swing low. The main resistance is still near the $40,000 zone. A clear upside break above the $40,000 resistance zone could spark a strong upward move.
The next major resistance is near the $42,000 level. Any more gains could open the doors for a larger recovery towards the $45,000 level.
Dips Supported in BTC?
If bitcoin fails to clear the $40,000 resistance, there is a risk of a downside correction. An initial support on the downside is near the $38,200 level.
The first major support is still near the $37,000 zone and the 100 hourly SMA. If there is a downside break below the $37,000 support, the price could decline towards the $35,000 support zone in the near term.
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 well above the 50 level.
Major Support Levels – $38,200, followed by $37,000.
Major Resistance Levels – $39,500, $40,000 and $42,000.

Kieran Dickens
Kieran Dickenshttp://btcsonic.xyz
I have been a crypto author for over 2 years now and have written for numerous publications. I have a vast amount of experience in the industry and continue to stay up-to-date on all the latest news and developments. My writing is highly accurate and informative, and I always aim to provide value to my readers.

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