Bitcoin price started an upside correction from the $38,500 support zone. BTC could gain bullish momentum if it clears the $40,500 resistance zone.
- Bitcoin price is attempting a recovery wave from the $38,500 support zone.
- The price is trading below $40,000 and the 100 hourly Simple moving average.
- There is a major bearish trend line forming with resistance near $40,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might struggle to recover above the $40,400 and $40,500 resistance levels.
Bitcoin Price Attempts Recovery
Bitcoin price extended its decline below the $40,000 support zone. BTC even spiked below the $49,200 level and tested the $38,500 support zone. A new weekly low was formed near $38,518 and the price started an upside correction.
There was a recovery wave above the $39,200 and $39,500 levels. However, Bitcoin is now trading below $40,000 and the 100 hourly Simple moving average.
Immediate resistance is near the $40,400 level. There is also a major bearish trend line forming with resistance near $40,400 on the hourly chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the downward wave from the $42,260 swing high to the $38,518 low.
The next key resistance could be $40,500, above which the price could rise and test $40,850. It is close to the 61.8% Fib retracement level of the downward wave from the $42,260 swing high to the $38,518 low.
Source: BTCUSD on TradingView.com
A clear move above the $40,850 resistance could send the price toward the $41,500 resistance. The next resistance is now forming near the $42,000 level. A close above the $42,000 level could push the price further higher. The next major resistance sits at $42,500.
Another Drop In BTC?
If Bitcoin fails to rise above the $40,400 resistance zone, it could start another decline. Immediate support on the downside is near the $39,400 level.
The next major support is $38,500. If there is a close below $38,500, the price could gain bearish momentum. In the stated case, the price could visit the $37,000 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $39,400, followed by $38,500.
Major Resistance Levels – $40,400, $40,500, and $40,850.
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Credit: Source link
