BTC/USD Daily Chart. Source: TradingView
Bitcoin is up by a strong 6% over the past 24-hours as it surged almost $2,000 from $38,000 to reach $40,000. Since Tuesday, the bulls have been back in town when BTC managed to break past the previous consolidation phase by pushing above the upper angle of a descending triangle.
Since then, the buyers have pushed higher and allowed Bitcoin to increase by a total of almost 20% to breach the $40,000 level today.
With the newly found bullish momentum, it is back on track to re-approach the ATH price at $42,000 and, possibly, continue above it.
On the short term charts, Bitcoin has reached the resistance at $40,512, provided by a bearish .886 Fib Retracement level. This will be the next resistance to breach to continue toward $42,000.
Key Support Levels: $40,000, $39,180, $38,567, $38,000, $37,350.
Key Resistance Levels: $40,735, $41,000, $42,000 (ATH), $42,240, $42,800.
Moving forward, the first level of resistance lies at $40,735. This is closely followed by $41,000 and then the ATH price of $42,000.
Beyond the ATH, resistance is expected at $42,240 (short term 1.414 Fib Extension), $42,800, and $44,320 (1.618 Fib Extension – purple). Additional resistance lies at $45,355 and $47,530.
On the other side, the first support lies at $40,000. This is followed by $39,180, $38,567 (.236 Fib Retracement), the ascending trend line, and $38,000. Additional support is found at $37,350 (.382 Fib) ad $36,360 (.5 Fib).
The RSI is firmly in the bullish favor as it soars above 60. It is quickly approaching overbought conditions but has room to continue much higher before becoming overextended.
