Bitcoin began a wave of recovery above the $38,400 resistance to the US Dollar. To move to a positive zone, BTC needs to clear $39600
- Bitcoin managed to remain above $37.650, and began an upward correction.
- The 100-hourly moving average and price are now close to $39,200.
- On the hourly chart for the BTC/USD pair, there is support close to $39,000. (Data feed from Kraken).
- To see a reasonable increase, the pair needs to clear $39600.
Bitcoin price recovers ground
The Bitcoin price reached a level above $38,000, and then started to recover. BTC crossed the $38,400 resistance level and broke through $38,500.
A move was seen above the 50% Fib Retracement level for the key drop of $40,775 swing high, to $37.672 low. Bitcoin rose above $39,000. However, it was faced with sellers at $39,000. The 100-hourly simple moving average and bitcoin are now close to $39,000.
A key bullish trendline is also in place with support close to $39,220. This hourly chart shows the BTC/USD pair. To the upside, a resistance level is located near $39600.
The key drop from $40,775 swing high and $37,672 bottom was also at 61.8% Fib. It is close to the $39,000. Near the $40,000 level could be the next major resistance. The doors to a reasonable increase could open if we close above the $39600 level.
Source: BTCUSD at TradingView.com
The price may even exceed the $40,000 barrier in the above case. Perhaps the $40,770 area will hold off as the next resistance.
BTC – A New Decline
It could lead to a further decline if bitcoin does not clear the $39600 resistance area. Support for the downside lies near the $39250 level.
Near the trend line, and at $39,000.200 is where you will find support. The price could drop further if it falls below the $39,000. If this happens, then the price may drop to $38,400.
Indicators technical
Hourly MACD – The MACD is slowly 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 – $39,200, followed by $38,400.
Major Resistance Levels – $39,600, $40,000 and $40,770.
