October 5, 2022

TA: Bitcoin Surges To $40K, Why BTC Could Rally Further

2 min read

Bitcoin price started a strong upward relocation above the $35,000 resistance versus the United States Dollar. BTC is showing positive signs and it could rally even more above $40,000.

  • Bitcoin started a strong boost above the $33,000 and $35,000 resistance levels.
  • The cost is now trading well above $35,000 and the 100 hourly easy moving average.
  • There is an essential bullish pattern line forming with support near $35,500 with resistance near $31,250 on the hourly chart of the BTC/USD pair (information feed from Kraken).
  • The set might fix gains, but the bulls are likely to remain active near $37,000.

Bitcoin Price Surges above $38,000

Bitcoin rate found a strong purchasing interest near the $32,000 zone. BTC formed an assistance base near the $32,000 and it began a significant upward move.

The cost surged above the $32,000 and $35,500 resistance levels. There was a clear break above the $38,000 resistance level. The upward relocation acquired strength and the price even traded near the $40,000 resistance zone.

A high was formed near $39,721 and the rate is now remedying gains. It is trading near the 23.6% Fib retracement level of the current rally from the $33,904 swing low to $39,723 high. Bitcoin is now trading well above $35,000 and the 100 per hour basic moving average.

There is also a crucial bullish trend line forming with assistance near $35,500 with resistance near $31,250 on the per hour chart of the BTC/USD set. It is revealing a lot of favorable signs near the $38,000 level. On the benefit, a preliminary resistance is near the $39,000 level.

Bitcoin Price

 Source: BTCUSD on TradingView.com

The very first significant resistance is near the $39,500 level. The main resistance sits near $40,000. An effective break and close above the $40,000 level might start a fresh rally in the near term. In the specified case, the rate is most likely to move towards the $42,500 level in the near term.

Dip Supported in BTC?

If bitcoin fails to climb above the $39,500 and $40,000 resistance levels, it might start a drawback correction. A preliminary assistance on the disadvantage is near the $37,500 level.

The very first major assistance is now near the $36,800 zone. A clear downside break below the $36,800 assistance might perhaps push the price towards the $36,000 assistance zone in the near term.

Technical indicators:

Hourly MACD –– The MACD is now losing rate in the bullish zone.

Hourly RSI (Relative Strength Index) –– The RSI for BTC/USD is now well in the overbought zone.

Major Support Levels –– $37,500, followed by $36,800.

Significant Resistance Levels –– $39,000, $39,500 and $40,000.