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

Bitcoin price found a strong buying interest near the $32,000 zone. BTC formed a support base near the $32,000 and it started a major upward move.

The price surged above the $32,000 and $35,500 resistance levels. There was a clear break above the $38,000 resistance level. The upward move gained and the price even traded close to the $40,000 resistance zone.

A high was formed near $39,721 and the price is now correcting gains. It is near the 23.6% Fib retracement of the recent rally from the $33,904 swing low to $39,723 high. Bitcoin is now trading well above $35,000 and the 100 hourly simple moving average.

There is also a key bullish trend line forming with support near $35,500 with resistance near $31,250 on the hourly chart of the BTC/USD pair. It is showing a lot of positive signs near the $38,000 level. On the upside, an initial resistance is near the $39,000 level.

The first major resistance is near the $39,500 level. The main resistance sits near $40,000. A successful break and close above the $40,000 could initiate a fresh rally in the near term. In the stated case, the price is 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 could start a downside correction. An initial support on the downside is near the $37,500 level.

The first major support is now near the $36,800 zone. A clear downside break below the $36,800 support may possibly push the price towards the $36,000 support zone in the near term.

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