Bitcoin has been regaining its lost ground and is trading at $39,000 above the US dollar. BTC may gain bullish momentum once it crosses the $40,000 resistance.
- Bitcoin has been slowly recovering, and is trading in excess of $39,000.
- The 100-hourly simple moving average is at $39,200.
- The hourly BTC/USD chart showed a break above a significant bearish trendline, with resistance close to $38,980. (Data feed from Kraken).
- This could cause the pair to accelerate faster and even exceed $40,000 threshold.
Bitcoin price correction
Bitcoin’s price continued falling below the $38,000 level. BTC was able to find support in the $37.150 area and began a solid recovery.
Before the price correction higher, a low formed at $37159. The price moved above the resistance levels of $38,000 and 38,000500. Price was able climb to the 76.4% Fib level of the down move, which took it from $39,545 swing high, to $37,159 low.
On the hourly chart for the BTC/USD pair, there was an above-average break of a bearish trend line that had resistance close to $38,980. Bitcoin trades above the $39,200 hourly moving average and the simple 100-hour moving average.
The immediate resistance to the upside is at the $39 545 swing high. Next is $40,000, which will be the major resistance. The price could accelerate higher if it moves above $40,000 resistance. If this happens, then the price might rise to the $41,000 area.
Source: BTCUSD at TradingView.com
Near the $41,000 mark is the 1.618 Fib extension of the downward movement from the $39.545 swing high and $37.159 low. Price gains could push the price to $42,200.
A Rejection of BTC
It could also begin another downturn if bitcoin does not clear the $40,000 resistance area. The $39,150 area is a support zone for the downside.
Near the $38,800 and 100-hourly simple moving average levels is the next significant support. The price could gain bearish momentum if it breaks below the $38,800 resistance. There is the possibility of the price moving towards $37,500 in this scenario.
Indicators technical
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $39,150, followed by $38,800.
Major Resistance Levels – $39,545, $40,000 and $41,000.