Rally

Bitcoin

Resistance

Bitcoin price extended its rally above the $42,000 resistance. BTC is now correcting gains and might test the $40,800 support zone. 
<ul> 
 <li>Bitcoin surged further above the $41,200 and $42,000 levels.</li> 
 <li>The price is trading above $41,200 and the 100 hourly Simple moving average.</li> 
 <li>There is a major bullish trend line forming with support near $40,880 on the hourly chart of the BTC/USD pair (data feed from Kraken).</li> 
 <li>The pair could correct lower toward $40,800 before it starts a fresh increase.</li> 
</ul> 
<h2 id="bitcoin-price-rises-over-10">Bitcoin Price Rises Over 10%</h2> 
Bitcoin price started a <a href="https://www.newsbtc.com/analysis/btc/bitcoin-price-surges-over-40k/" target="_blank" rel="noopener ">strong increase above the $38,500 resistance zone</a>. BTC gained over 10% in the past few sessions and broke many hurdles near $40,000. 
It even cleared the $41,200 resistance and spiked above the $42,000 zone. A new multi-month high is formed near $42,415 and the price is now correcting gains. There was a move below the $42,000 level. The price is now testing the 23.6% Fib retracement level of the upward move from the $39,360 swing low to the $42,415 high. 
Bitcoin also trades above $41,200 and the <a href="https://www.newsbtc.com/analysis/btc/bitcoin-price-sprint-to-40000/" target="_blank" rel="noopener ">100 hourly Simple moving average</a>. Besides, there is a major bullish trend line forming with support near $40,880 on the hourly chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the upward move from the $39,360 swing low to the $42,415 high. 
On the upside, immediate resistance is near the $42,200 level. The first major resistance is forming near $42,500, above which the price might rise toward the $43,200 level. 
<a href="https://www.newsbtc.com/wp-content/uploads/2023/12/Bitcoin-2.png?resize=1024%2C468"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-563870" src="https://www.newsbtc.com/wp-content/uploads/2023/12/Bitcoin-2.png?resize=1024%2C468" alt="Bitcoin Price" width="1024" height="468" srcset="https://www.newsbtc.com/wp-content/uploads/2023/12/Bitcoin-2.png?resize=1024%2C468?w=1835 1835w, https://www.newsbtc.com/wp-content/uploads/2023/12/Bitcoin-2.png?resize=1024%2C468?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2023/12/Bitcoin-2.png?resize=1024%2C468?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2023/12/Bitcoin-2.png?resize=1024%2C468?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2023/12/Bitcoin-2.png?resize=1024%2C468?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2023/12/Bitcoin-2.png?resize=1024%2C468?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2023/12/Bitcoin-2.png?resize=1024%2C468?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"></a> 
Source: <a href="https://www.tradingview.com/symbols/BTCUSD/" target="_blank" rel="noopener nofollow">BTCUSD on TradingView.com</a> 
A close above the $43,200 resistance might send the price further higher. The next key resistance could be near $44,000, above which BTC could rise toward the $45,000 level. 
<h2 id="are-dips-limited-in-btc">Are Dips Limited In BTC?</h2> 
If Bitcoin fails to rise above the $42,200 resistance zone, it could start a downside correction. Immediate support on the downside is near the $41,200 level. 
The next major support is near $40,800 and the trend line. If there is a move below $40,800, there is a risk of more downsides. In the stated case, the price could drop toward the $40,000 support in the near term. 
Technical indicators: 
Hourly MACD – The MACD is now losing pace in the bullish zone. 
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level. 
Major Support Levels – $41,200, followed by $40,800. 
Major Resistance Levels – $42,200, $42,500, and $43,200.

Bitcoin Price Extends Rally Above $42K But Signs of Trend Exhaustion Appear

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