Bitcoin is showing signs of recovery and may rise above $40K


Bitcoin is correcting losses and trading above USD 39,000 against the US dollar. BTC could gain bullish momentum if it clears the $40,000 resistance zone.

Bitcoin is slowly recovering and trading above the $39,000 zone. The price is trading above $39,200 and the 100 hourly simple moving average. There was a break above a major bearish trendline with resistance near $38,980 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could accelerate higher and even surpass the $40,000 resistance zone.

Bitcoin Price Begins Correction

Bitcoin price extended decline below the $38,000 support zone. However, BTC found support near the $37,150 zone and started a significant recovery wave.

A low was formed near $37,159 before the price corrected higher. There was a move above the $38,000 and $38,500 resistance levels. The price was able to climb above the 76.4% Fib retracement level of the downward move from the $39,545 swing high to the $37,159 low.

In addition, there was a break above a key bearish trendline with resistance near $38,980 on the hourly chart of the BTC/USD pair. Bitcoin is now trading above $39,200 and the 100 hourly simple moving average.

On the upside, there is an immediate resistance near the $39,545 swing high. The next major resistance is near the $40,000 level. If there is a clear move above the $40,000 resistance zone, the price could accelerate higher. In the said case, the price could rise to the $41,000 zone.

Source: BTCUSD on TradingView.com

The 1.618 Fib extension level from the downward move from the swing high from $39,545 to $37,159 low is also near the $41,000 level. More gains could send the price towards the USD 42,200 level.

Another rejection in BTC?

If bitcoin fails to clear the $40,000 resistance zone, it could trigger another drop. An immediate support on the downside is near the $39,150 zone.

The next major support is seen near the $38,800 level and the 100 hourly simple moving average. If there is a downward breach below the $38,800 support, the price could gain bearish momentum. In the mentioned case, there is a risk of a move towards the USD 37,500 level.

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 now above the 50 level.

Key support levels – $39,150, followed by $38,800.

Major resistance levels – $39,545, $40,000 and $41,000.

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