Bitcoin Consolidates Above Support, Here’s What Could Trigger Fresh Rally

June 16, 2021

Bitcoin price is trading in a positive zone above the $40,000 level against the US Dollar. BTC is likely to start a fresh rally if it clears the $41,200 resistance zone.

Bitcoin remained in a positive zone above the $39,000 and $40,000 levels.
The price is currently well above $39,000 and the 100 hourly simple moving average.
There is a major contracting triangle forming with resistance near $40,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to start a fresh rally once it clears $40,650 and $41,200.

Bitcoin Price Remains Elevated
Bitcoin started a fresh increase after it broke the key $38,500 resistance zone. BTC even climbed above the $40,000 resistance zone and it settled well above the 100 hourly simple moving average.
However, the price seems to be struggling above the $41,000 level. There were two attempts to gain strength above $41,000, but the bulls failed. The recent high was formed near $41,384 before the price corrected lower. It dipped below $40,500, but the bulls were active near $39,500.
A low is formed near $39,476 and the price is now consolidating in a range. It is trading above the 23.6% Fib retracement level of the recent decline from the $41,384 high to $39,476 low.
On the upside, an immediate resistance is forming near the $40,450 level. It is near the 50% Fib retracement level of the recent decline from the $41,384 high to $39,476 low. The first major resistance is near the $40,650 level. There is also a major contracting triangle forming with resistance near $40,650 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com
A clear upside break above the triangle resistance could spark bullish moves. The next resistance is near the $41,200 level. A close above $41,200 level is likely to stage a move towards the $43,500 level.
Dips Limited in BTC?
If bitcoin fails to clear the $41,200 resistance, it could start a downside correction. An initial support on the downside is near the $40,000 level.
The first major support is near the $39,80 level and the triangle lower trend line. A downside break below the triangle support could push the price towards the $38,500 support level and the 100 hourly SMA.
Technical indicators:
Hourly MACD – The MACD is likely to move back into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 50 level.
Major Support Levels – $39,800, followed by $38,500.
Major Resistance Levels – $40,650, $41,200 and $43,500.