Bitcoin price fell towards the $38,500 support zone. BTC is trying to stage a recovery wave and could struggle to climb above the USD 40,500 resistance.
- Bitcoin price extended its decline and tested 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 near $40,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could struggle to recover above the USD 40,000 and USD 40,500 resistance levels.
Bitcoin price turns red
Bitcoin price remained in a bearish zone below the $40,000 support zone. BTC extended its decline and traded below the USD 49,200 level. Finally, it tested the USD 38,500 support zone as discussed in yesterday’s post.
A new weekly low was formed near $38,518 and the price is now correcting losses. It is slowly recovering above the USD 39,000 level. It cleared the 23.6% Fib retracement level of the downward move from the $42,260 swing high to the $38,518 low.
Bitcoin is now trading below $40,000 and the 100 hourly Simple Moving Average. The immediate resistance is near the $40,000 level. The first major resistance is near the $40,350 level or the 50% Fib retracement level of the downward move from the $42,260 swing high to the $38,518 low.
Source: BTCUSD on TradingView.com
There is also a major bearish trendline forming with resistance around $40,450 on the hourly chart of the BTC/USD pair. A clear move above the USD 40,450 resistance could send the price towards the USD 40,850 resistance. The next resistance is now forming near the $41,250 level. A close above the USD 41,250 level could push the price further higher. The next major resistance is at $42,000.
Another drop in BTC?
If Bitcoin fails to rise above the USD 40,450 resistance zone, it could trigger another decline. The immediate downside support is near the $39,400 level.
The next major support is $39,000. If there is a close below $39,000, the price may gain bearish momentum. In the said case, the price could reach the $38,500 support again 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 – $40,350, $40,450 and $40,850.
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