Bitcoin price continued to gain momentum, hitting a new all-time high near $ 42,000 against the US dollar. BTC is currently consolidating profits and could soar towards $ 45,000 and $ 50,000.
- Bitcoin is trading on a strong uptrend above the USD 36,000 and USD 40,000 support levels.
- The price consolidates over $ 40,000 and is well above the simple moving average of 100 (4 hours).
- A central contraction triangle is forming on the 4-hour chart of the BTC / USD pair (data feed from Kraken) with resistance near USD 41,200.
- The pair is likely to continue rising towards $ 44,000 and $ 45,000 in the near future.
Bitcoin price sets new ATH
In the past few days, there have been additional gains in Bitcoin price above the USD 35,000 resistance against the US dollar. The BTC / USD pair has cleared many huge hurdles near USD 36,000 and USD 38,000 to keep rising.
It even surged above the $ 40,000 level and was well above the simple moving average of 100 (4 hours). Bitcoin hit a new all-time high at $ 42,068 before it began consolidating profits. There was a slight drop below $ 41,000.
The price even tested the $ 40,000 level. However, the bulls were able to protect the 23.6% fib retracement level of the recent surge from the $ 29,995 low to the $ 42,068 high.
Source: BTCUSD on TradingView.com
A major contraction triangle appears to be forming on the 4-hour chart of the BTC / USD pair with resistance near USD 41,200. If there is an upside break above the triangular resistance and $ 41,500, the price will likely resume its upward movement.
Initial resistance is near the high of $ 42,068, above which the price is expected to gain 5-8%. In the aforementioned cases, the $ 45,000 level could be an easy target for the bulls. Further gains could open the doors for a push towards the $ 50,000 zone.
Dips supported in BTC?
Unless Bitcoin stays high above the triangular resistance, there is a risk of breaking down below $ 40,000. The first major support is at $ 39,200.
A clear close below the $ 39,200 support could potentially lead the price towards the next major support at $ 36,000. It is close to the 50% fib retracement level of the recent spike from $ 29,995 to $ 42,068.
Technical indicators
4 hours MACD – The MACD for BTC / USD is gaining momentum in the bullish zone.
4 hour RSI (Relative Strength Index) – The RSI for BTC / USD is still well above the 60 level.
Main support tier – $ 39,200
Main Resistance Level – $ 41,200
