Bitcoin managed to increase its value by $39,500 against USD. BTC faces significant resistance close to $39 800 and $40,000.
- Bitcoin reached a high of $39,500. However, it did not break through the $40,000 resistance.
- It is currently trading at $39,000, with the simple 100-hour moving average.
- The hourly BTC/USD chart showed a breakout above the key bearish trendline with resistance at $38,750 (data feed Kraken).
- To start a new increase, the pair needs to clear both $39 800 and $40,000 resistance levels.
Bitcoin Price Facing Hurdle
Bitcoin’s price began to recover above the $38,200 resistance. BTC spiked to above $38,500 resistance, but was met with strong resistance.
On the hourly chart for the BTC/USD pair, the price broke above a crucial bearish trend line. Resistance was located at close to $38,750. It climbed to the $39800 and 100 hourly simple moving mean levels. It faced strong resistance at the $40,000 mark.
Near $39 899, a high was reached and then the price corrected its gains. A move below the $39,000.500 level was observed. Bitcoin dropped below the 23.6% Fib level of the upmove from the $37.593 swing low, to the $39,899 peak.
It trades at $39,000, the simple moving average of 100 hours. Near the $39550 mark, there is immediate resistance to the upside. Next major resistance may be at the $39,000. Main breakout resistance remains in the $40,000 area.
Source: BTCUSD from TradingView.com
If the resistance zone is breached, it could lead to steady increases. If the previous scenario is true, then the price might rise towards $42,000.
BTC – A New Decline
It could fall further if bitcoin does not clear the $39550 resistance area. The $39,000 area is a support zone for the downside.
Near the $38,750 mark is the next significant support. The Fib retracement of the upward swing from $37,593 low to $39.899 high is at 50%. It is near $38,500, the main support level. Below that there are risks of sharp declines.
Indicators technical
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 – $38,750, followed by $38,500.
Major Resistance Levels – $39,550, $39,900 and $40,000.