TA: Bitcoin Breaks $40K, Key Upside Break Suggests Trend Change

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 (data feed from Kraken). The pair might correct lower, but there is a key support forming near the $40,000 zone. Bitcoin Price Rallies 5% Bitcoin price formed a base above the $38,000 level. BTC started a steady increase above the $39,550 resistance level and the 100 hourly simple moving average. It opened the doors for a move above the $40,000 resistance. The bulls took control and were able to push the price above the $41,000 resistance zone. The price gained over 5% and there was a move towards $41,800. A high is formed near $41,706 and the price is now correcting gains. It traded below the $41,000 level. There was a test of the 23.6% Fib retracement level of the recent wave from the $38,170 swing low to $41,706 high. On the downside, there are many support levels forming near $40,000. There is also a key bullish trend line forming with support near $39,250 on the hourly chart of the BTC/USD pair. On the upside, bitcoin might face resistance near the $41,200 level. Source: BTCUSD on TradingView.com The next major...