Bitcoin continued to fall below $39,000 against the US Dollar. BTC discovered support in the region of $38,550 and launched a strong recovery.
- Bitcoin fell below its $39250 and $39,000 levels, before it gained support.
- The current price trades above $40,000, and the simple moving average is 100 hours.
- The hourly BTC/USD chart showed a breakout above a significant bearish trend line, with resistance close to $40,000. (Data feed from Kraken).
- For a significant upward movement to begin, both must cross the $41,500 resistance.
Bitcoin Price Still Faces Hurdles
The Bitcoin price fell below $40,000 and continued to decline. BTC traded even below $39,200 and fell to a weekly low.
It traded below $39,000, and as low at $38,570. It has been undergoing a recovery wave recently and was able to climb above the $40,000 support zone. On the hourly chart for the BTC/USD pair, there was a break above the main bearish trend line. Resistance is near $40,000.
Bitcoin now trades at $40,000 above the 100 hourly simple moving mean. The Bitcoin price traded well above $41,000 but did not break the $41,500 resistance.
Near $41,334 is a high and it is currently correcting its gains. The price is currently testing the 23.6% Fib Retracement level, which represents the increase in the stock from $38,570 to $41,334 high. The $41,000 mark is the immediate resistance.
Source: BTCUSD from TradingView.com
Next key resistance is $41,350. However, the main resistance remains at $41,500. The price should clear the $41,500 area to initiate a strong upward movement. If the previous scenario is true, then the price might rise towards $42,500. If the gains continue, the price could move toward the $43,200 mark.
BTC – A New Decline
It could fall further if bitcoin does not clear the $41,500 resistance area. The immediate support for the downside lies near the $40.250 level and 100-hourly simple moving average.
Near the $39,000.950 level is where you will find the next significant support. The Fib level is close to the 50% Fib Retracement level for the recent rise from $38,570 low to $41,334 high. A decline below the $39950 support zone may push it towards $39,000.
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 – $40,250, followed by $39,950.
Major Resistance Levels – $41,350, $41,500 and $42,500.
