Bitcoin has been consolidating over the $39250 support zone in relation to the US Dollar. If Bitcoin can clear the $40,000.250 resistance zone, it could rebound.
- Bitcoin tested the $39,250 support area and saw strong buyer interest.
- The current price trades below $41,000, as well as the simple 100-hour moving average.
- On the hourly chart for the BTC/USD pair, there is an apparent bearish trend line connecting with resistance close to $40,000. (Data feed from Kraken).
- If the pair moves above $40,250, it could begin a quick recovery.
Bitcoin Price Remains Supported
Bitcoin’s price tried an upward correction higher than the $40,000 mark. BTC reached $40,400 but was still under pressure from the bears.
The price seems to have struggled with staying above 23.6% Fib level, which is the pivotal decline from $43,416 swing high and $39,240 low. Near $40,800 a high was reached and then the price began a new decline. Although the price fell below the $40,000 mark, the bulls held firm to the $39.250 level.
The price has now stabilized at $40,000, although it remains well below the simple 100 hour moving average. The $40,250 mark is the immediate resistance. A connecting bearish trendline is also visible on the hourly BTC/USD chart with resistance close to $40,250.
The price could reach $40,800 if it moves above the trendline. Near $41,250 could be the next resistance. This is near the 50% Fib level of the pivotal decline from the $43,416 high and the $39,240 lowest.
Source: BTCUSD from TradingView.com
The price may accelerate higher if the bulls can clear the $41,250 resistance and $41,350 resistance. The price could rise to the $41,800 zone, or 100-hourly simple moving average in this scenario.
BTC’s Decline Continues
Bitcoin could move lower if it fails to break the $40,250 resistance level. Support for the downside lies near $39 600.
Near the $39.250 support level is the next significant support. The downside movement below $39,250 could lead to losses. If this happens, then the price may fall towards $38,500 (or even $38,000)
Technical indicators
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just above the 50 level.
Major Support Levels – $39,600, followed by $39,250.
Major Resistance Levels – $40,250, $41,250 and $41,800.
