Bitcoin is able to surge towards $50K very soon as it consolidated above the $40K level, but gained more momentum and traded to a new all-time high of $42,000. BTC is trading in a strong uptrend above the $36,00 support levels as we can see more in our latest BTC news.
The price is consolidated above $40,000 and it is well above the 100 simple moving average. There’s also a key contracting triangle forming with the resistance of $41,200 on the 4-hour charts of the pair with it being able to shoot higher in the $50K region in the near-term. Over the past few days, there were some more gains in the BTC price above $35,000 resistance against the US dollar and the pair even broke many major hurdles close to the $36,000 and the $38,000 level to continue higher. It even surged above the $40,000 level and settled well above the 100 simple moving average before trading to a new all-time high of $42,068 before the consolidation happened. There was a minor decline below the $41,000 level as well but now Bitcoin is able to surge higher.
The price tested the $40,000 level but the bulls were able to protect the 23.6% fib retracement level from the increase of the $29,995 swing low to the $42,068 high. It seems that there’s a key contracting triangle forming with the resistance near the $41,200 on the 4-hour charts of the pair and there’s also an upside break above the triangle resistance and the $41,500 with more shots of resuming upwards.
The initial resistance is close to the $42,068 high above which the price is likely to gain 5% or higher. The $45,000 level could be an easy target for the bulls so more gains could even open the doors for a push towards the $50,000 zone. If BTC fails to continue higher above the triangle resistance, there’s a risk of a downside break below $40,000 with the first major support being near the $39,200. A clear close below this level could lead the price towards the next major support of $36,000 with a close of the 50% fib retracement level of the increase at $29,995 swing low to $42,068 high.
The 4-hour MACD for the pair has gained momentum in the bullish zone and the RSI for the pair is still well above the 60 levels. The major support is close to the $39,200 level with the major resistance level being set at $41,200.
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