TA: Bitcoin Technicals Suggest Bulls Aim Sharp Move Above $42K

Bitcoin climbed further above the $42,000 level against the US Dollar. BTC is showing positive signs and might rally further above $42,200.

Bitcoin remained well supported above the $41,000 and $41,100 levels.
The price is now trading above $41,500 and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $41,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might start a strong upward move if it settles above the $42,000 resistance zone.

Bitcoin Price Gains Pace

Bitcoin price extended increase above the $41,500 resistance zone. BTC even cleared the $42,000 resistance zone and settled above the 100 hourly simple moving average.

A high was formed near $42,235 before the price started a downside correction. There was a move below the $41,500 pivot level. The price even spiked below the $41,000 level, but it found support near the $40,900 level.

A fresh base was formed and the price is now back above $41,500. Bitcoin climbed above the 50% Fib retracement level of the recent decline from the $42,235 swing high to $40,900 low. It is now trading above $41,500 and the 100 hourly simple moving average.

There is also a key bullish trend line forming with support near $41,725USD pair. An immediate resistance on the upside is near the $41,725 level.

Source: BTCUSD on TradingView.com

The 61.8% Fib retracement level of the recent decline from the $42,235 swing high to $40,900 low is also near the $41,725 level. The next key resistance could be $42,000. To start a strong upward move, the price must settle above the $42,000 zone and then clear $42,230. If the bulls succeed, the price could rise towards the $43,200 resistance zone.

Dips Supported in BTC?

If bitcoin fails to clear the $42,000 resistance zone, it could start a downside correction. An immediate support on the downside is near the $41,250 level.

The next major support is seen near the $41,000 level and the trend line zone. A downside break below the trend line might send the price to $40,750 or the 100 hourly simple moving average.

Technical indicators:

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

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

Major Support Levels – $41,250, followed by $41,000.

Major Resistance Levels – $41,725, $42,000 and $42,500.

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