Bitcoin price is holding gains above the $38,000 pivot level against the US Dollar. BTC is signaling more gains above the $40,000 resistance zone in the near term.
Bitcoin is showing positive signs above the $37,000 and $38,000 resistance levels. The price is trading nicely above the $37,000 zone and the 100 hourly simple moving average. There was a break above a key contracting triangle with resistance near $38,000 on the hourly chart of the BTC/USD pair. The pair is likely to accelerate higher above the $39,500 and $40,000 resistance levels.
The main resistance is still near the $40,000 zone. A clear upside break above the $40,000 resistance zone could spark a strong upward move. The next major resistance is near the $42,000 level. Any more gains could open the doors for a larger recovery towards the $45,000 level.
If bitcoin fails to clear the $40,000 resistance, there is a risk of a downside correction. An initial support on the downside is near the $38,200 level.
The first major support is still near the $37,000 zone and the 100 hourly SMA. If there is a downside break below the $37,000 support, the price could decline towards the $35,000 support zone in the near term.
Dogecoin’s price was at a critical level on the 4-hour chart. The next few zones above represented rigid resistance marks especially between $0.377 and $0.44. This zone also showed a confluence between the 50-SMA (yellow) and 200-SMA (green).
If a breakout fails to culminate, DOGE would likely see some sideways movement within this channel. On the other hand, a rise above this critical zone could push DOGE towards $0.569- representing a jump of 52% from $0.377. A bearish outcome could see the cryptocurrency head south towards $0.264-support.
Ethereum would need to avoid the $2,620 pivot to bring the first major resistance level at $2,856 into play.
Support from the broader market would be needed, however, for Ethereum to break out from the 38.2% FIB of $2,740.
Barring an extended crypto rally, the first major resistance level would likely cap any upside.
In the event of a broad-based crypto rally, Ethereum could test resistance at the 23.6% FIB of $3,369. The second major resistance level sits at $3,004.
Failure to avoid the $2,620 pivot would bring the first major support level at $2,471 into play.
Barring an extended sell-off, however, Ethereum should steer clear of sub-$2,300 levels. The second major support level sits at $2,235.
A sustained fall through the 62% FIB of $1,725 would form a near-term bearish trend from 12th May’s swing hi $4,384.30.