Bitcoin started a major increase above the $40,000 resistance against the US Dollar. BTC might correct lower, but downsides could be limited below $40,000.
Bitcoin was able to clear the $40,000 resistance and entered a positive zone. The price is trading above $40,500 and the 100 hourly simple moving average. There is a key bullish trend line forming with support near $39,250 on the hourly chart of the BTC/USD pair. The pair might correct lower, but there is key support forming near the $40,000 zone.
The next major resistance could be near the recent high of $41,800. A clear move above the $41,800 level could even push the price above the $42,000 resistance. In the stated case, the price might rise towards the $43,200 level.
If bitcoin fails to clear the $41,200 resistance zone, it could start a downside correction. An immediate support on the downside is near the $40,500 zone.
The next major support is seen near the $40,000 level. It is near the 50% Fib retracement level of the recent wave from the $38,170 swing low to $41,706 high. The main support now sits near the trend line and $39,000.
Ethereum rallied above $2,650 against the US Dollar. ETH price failed to settle above $2,700, trimmed gains, and now consolidating near $2,620.
Ethereum started a fresh increase above $2,600, but it faced sellers above $2,700. The price is now trading above $2,600 and the 100 hourly simple moving average. There was a break above a key bearish trend line with resistance near $2,580 on the hourly chart of ETH/USD. The pair is consolidating above $2,600 and might start another increase in the near term.
Ether price must clear the $2,685 and $2,700 resistance levels to start a steady increase. In the stated case, the price may perhaps rise towards the $2,800 level.
If Ethereum fails to start a fresh increase above the $2,650 level, it could start another decline. An initial support on the downside is near the $2,610 level.
The next major support is near the $2,600 level. It is near the 61.8% Fib retracement level of the recent rally from the $2,506 swing low to $2,733 high. A close below the $2,600 support zone could start a drop towards the $2,500 support zone.
Thanks for reading!
Feel free to share your thoughts, feedback, and suggestions in the comments below. If you like this article share it on social media and with your friends! Follow us and stay tuned for daily updates!
Risk Disclaimer: Digital Asset Trading can be a challenging and potentially profitable opportunity for investors. Users are strongly encouraged to carefully consider their investment objectives, level of experience, and risk appetite.