Bitcoin fell further and reached the $38,200 level against the US Dollar. BTC began a significant recovery wave, and it climbed over the $40,000 resistance.
- Bitcoin continued to decline but remained above $38,000.
- Now, the price has risen to above $40,000 with the simple 100-hour moving average.
- The hourly BTC/USD chart showed a breakout above the major bearish trendline with resistance at $39,550 (data feed Kraken).
- Both the pair are excited about more upsides beyond the $40,500 resistance level and 40,950 support levels.
The Bitcoin price recovers sharply
Bitcoin’s price was in a bearish zone following the break of $39,200. BTC fell below the $38,500 mark, although the bulls were very active around the $38,200 mark.
Near $38,200 was the lowest point and prices began to climb. Price climbed above $39,000.500 and $39,000.500 resistances. The Fib retracement level at 23.6% of the pivotal decline, which was $42,950 high and $38,200 low, saw a rise above that point.
A break was also observed above the major bearish trendline with resistance at $39,550, on the hourly charts of BTC/USD. Bitcoin is back below $40,000 as per the 100 hourly moving average.
The $40,550 level is a strong resistance to the upside. The Fib level is close to the $50,550 mark. This is the critical resistance that marked the pivotal decline from $42,950 high to $38,200 low. Next key resistance is $40,950. Price could rise if the price moves higher than the $41,000 or $40,950 levels.
Source: BTCUSD from TradingView.com
The price may even exceed the $41,200 barrier in the above scenario. It is possible that the next significant resistance will be in the vicinity of $41,800.
BTC Supported Dips
A downside correction could occur if bitcoin does not clear the $41,000 resistance area. Support for the downside lies near $40,000
Near the $39 800 level and 100 hourly simple moving mean, the next significant support can be seen. The $39800 support zone could see another drop. If the previous scenario is true, then the price may fall to $39,000.
Indicators technical
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Levels – $40,000, followed by $39,800.
Major Resistance Levels – $40,550, $40,950 and $41,800.
