Bitcoin technicals suggest bulls are targeting a clear move above $42,000

Bitcoin continued to climb above the $42,000 level against the US Dollar. BTC is showing positive signs and could continue to rally 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 by Kraken).
• The pair could start a strong upward move if it settles above the $42,000 resistance zone.

Bitcoin price is gaining pace

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

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

A new base has been formed and the price is now back above $41,500. Bitcoin scaled above the 50% Fib retracement level of the recent decline from the $42,235 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 the $41,725USD pair. 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 drop from the $42,235 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 needs to settle above the $42,000 zone and then scale the $42,230 level. If the bulls succeed, the price could surge towards the $43,200 resistance zone.

Dips in BTC supported?

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

The next major support is seen near $41,000 and the trendline zone. A downside break below the trendline could propel 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.

Key support levels – $41,250 followed by $41,000.

Major resistance levels – $41,725, $42,000 and $42,500.

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