Bitcoin Reverse Losses, But Why $40K Still Is The Key

Bitcoin reached support of $34,300 near the US Dollar and has been on a steady upward trend. BTC rose above $38,000, however it remains in the 40000 range.

  • Bitcoin gained support at the levels of $34,300-$34,500.
  • The 100 hourly moving average is at the same level as $38,000, and it’s trading higher than that price.
  • A key bullish trend line is emerging with support at $37,600 (data feed Kraken).
  • If the pair rises above $40,000.

The Bitcoin price gains momentum

Bitcoin’s price continued falling below the $35,000 level. BTC however found support around the $34,300 to $34,500 levels. BTC reached a low of $34,333 before it began its strong upward movement.

The price reached the $36,500- and $37,000 resistances. Bulls managed to drive the price higher than the $38,000 and 100-hourly simple moving average levels. Although it soared to the top of the $39,000.500 resistance level there were no upward continuation.

The price has consolidated gains and has reached a high of $39,739 near the low. The price traded at 23.6% Fib level, which is the retracement of the upward movement from $34,333 swing lows to $39 7,739 highs.

Bitcoin trades above $38,000, the 100-hourly simple moving average and is currently trading at over $38,000. A key bullish trendline is also in place with support close to $37,600 at the hourly BTC/USD chart.

Bitcoin Price

Source: BTCUSD from TradingView.com

The $39,200 mark is the immediate resistance. Next is the $39,000. However, the main resistance remains at $40,000. Clear moves beyond the $40,000 level could push the price higher. It could reach $41,200 in the above scenario.

BTC Dips Limited

Bitcoin could begin a downtrend if it fails to break the $39,000.500 resistance level. The $38,000 area is a support zone for the downside.

Near the trend line and at the $37800 level, the next significant support can be seen. The price could gain bearish momentum to $36,000 if it breaks below the trendline support.

Technical indicators

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well above the 50 level.

Major Support Levels – $38,000, followed by $37,800.

Major Resistance Levels – $39,200, $39,500 and $40,000.

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