New Downside Correction Puts BTC/USD At 4,040: Further Gains Seem Likely

In today’s round of the fresh cryptocurrency news, we are seeing that Bitcoin as well as the top 10 cryptocurrencies are in a mild decrease. However, BTC has managed to stay above the $4,000 mark with a resistance level that is still in the $3,000 zone (between $3,965 and $3,980).

The key bearish trend line was breached with resistance at $3,970 on the hourly chart of the BTC/USD pair data feed from Kraken. On top of that, the BTC/USD level acted as a strong support along with the 100 hourly simple moving average.

More importantly, the key bearish trend line of Bitcoin was breached with resistance at $3,970 on the hourly charts. The BTC/USD pair managed to climb above the $3,980 level and move into a positive zone.

As a result, Bitcoin traded above the $4,000 level and formed a high at $4,017 before correcting lower. There was also a push below the 50% Fibonacci retracement level but the price signalized a following ascending channel with support at $3,965.

Finally, the 100 hourly moving average (SMA) is also positioned in the $3,960 support area. In other words, this is a solid indicator that the price of Bitcoin could climb higher as long as it is above the $3,960 level.

If we look at the current charts, we will see that Bitcoin (BTC) is gaining a bullish momentum slowly. It is above the $3,980 level right now – but the buyers need to gain strength above $4,020 and $4,040 in order to sustain the recent trend. Similarly, if there is a downside break that puts BTC below $3,960, the price could decline towards the $3,940 support level – or potentially to the $3,875 support level if there are any further losses.

As of right now, the technical indicators are as following:

• Hourly MACD – The MACD is about to move into the bullish zone.
• Hourly RSI (Relative Strength Index) – The RSI for BTC/USD moved above the 50 level and it is moving higher towards 60.
• Major Support Levels – $3,960 followed by $3,940.
• Major Resistance Levels – $4,000, $4,020 and $4,040.

Bitcoin is currently trading at $4,043 at press time – with a market cap of $71.17 billion. The total cryptocurrency market cap is at $139.6 billion and most of the altcoins in the top 10 are seeing 2% to 5% declines.