Bitcoin overcomes hurdles, why BTC could regain momentum
Bitcoin extended its decline and tested the $38,200 zone against the US dollar. BTC started a major recovery wave and climbed above the $40,000 resistance.
Bitcoin continued to decline but remained stable above the $38,000 level. The price is now back above $40,000 and the 100 hourly simple moving average. There was a break above a key bearish trendline with resistance near $39,550 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair is looking for more gains above the USD 40,500 and USD 40,950 resistance levels.
Bitcoin price recovers sharply
Bitcoin price remained in a bearish zone after it broke the $39,200 support. BTC continued to fall below the USD 38,500 level, but the bulls were active around the USD 38,200 level.
A low was formed near $38,200 and the price started a big rally. The price climbed higher above the USD 39,200 and USD 39,500 resistance levels. There was a move above the 23.6% Fib retracement level from the key drop from the $42,950 swing high to $38,200 low.
In addition, there was a break above a major bearish trendline with resistance near $39,550 on the hourly chart of the BTC/USD pair. Bitcoin is now back above $40,000 and the 100 hourly simple moving average.
An immediate resistance on the upside is near the USD 40,550 level. It is near the 50% Fib retracement level of the main drop from the $42,950 swing high to $38,200 low. The next key resistance could be $40,950. If there is a clear move above the $40,950 and $41,000 levels, the price may continue to climb.
Source: BTCUSD on TradingView.com
In the mentioned case, the price could even surpass the $41,200 resistance. The next major resistance may be near the $41,800 zone.
Dips supported in BTC?
If bitcoin fails to clear the $41,000 resistance zone, it could trigger a downside correction. An immediate support on the downside is near the $40,000 level.
The next major support is seen near the $39,800 level and the 100 hourly simple moving average. A close below the USD 39,800 support zone could spark another drop. In the said case, the price may drop to $39,000.
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.
Key support levels – $40,000 followed by $39,800.
Major resistance levels – $40,550, $40,950 and $41,800.