Bitcoin price started an upward correction from the USD 38,500 support zone. BTC could gain bullish momentum if it breaks the USD 40,500 resistance zone.
- Bitcoin price is trying to mount a recovery wave from the USD 38,500 support zone.
- The price is trading below $40,000 and the 100 hourly Simple Moving Average.
- A major bearish trendline is forming with resistance around $40,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could struggle to recover above the USD 40,400 and USD 40,500 resistance levels.
Bitcoin price attempts recovery
Bitcoin price extended its decline below the $40,000 support zone. BTC even spiked below the USD 49,200 level and tested the USD 38,500 support zone. A new weekly low was formed near $38,518 and the price started an upward correction.
There was a recovery wave above the USD 39,200 and USD 39,500 levels. However, Bitcoin is now trading below $40,000 and the 100 hourly Simple Moving Average.
The immediate resistance is near the $40,400 level. There is also a major bearish trendline forming with resistance around $40,400 on the hourly chart of the BTC/USD pair. The trendline 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 major resistance could be at USD 40,500, above which the price could rise and test USD 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 USD 40,850 resistance could send the price towards the USD 41,500 resistance. The next resistance is now forming around the $42,000 level. A close above the USD 42,000 level could push the price further higher. The next major resistance is at $42,500.
Another drop in BTC?
If Bitcoin fails to rise above the USD 40,400 resistance zone, it could trigger another decline. The immediate downside support is near the $39,400 level.
The next major support is $38,500. If there is a close below $38,500, the price may gain bearish momentum. In the mentioned case, the price could reach the support of $37,000 in the short 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 – USD 39,400, followed by USD 38,500.
Major resistance levels – $40,400, $40,500 and $40,850.
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