Bitcoin price began an upward correction at the $38,500 support zone. BTC could gain bullish momentum if it passes the $40,500 resistance zone.
- Bitcoin price is attempting to recover from the $38,500 support zone.
- The price is trading below $40,000 and the 100-hour simple moving average.
- The hourly chart of the BTC/USD pair (data feed from Kraken) shows a major bearish trendline forming with resistance near $40,400.
- The pair may struggle to recover above the $40,400 and $40,500 resistance levels.
Bitcoin price recovery attempt
Bitcoin price extended its decline below the $40,000 support level. BTC surged below the $49,200 level to test the $38,500 support area. A new weekly low was formed near $38,518 and the price began an upward correction.
There was a recovery above the $39,200 and $39,500 levels. However, Bitcoin is currently trading below $40,000 and the 100-hour simple moving average.
Immediate resistance is near the $40,400 level. The hourly chart of the BTC/USD pair also has a major bearish trend line forming with resistance near $40,400. The trend line is close to the 50% Fib retracement level of the bearish wave from the $42,260 swing high to the $38,518 low.
The next major resistance could be $40,500, above which the price could rise to test $40,850. The $42,260 swing high to $38,518 low is close to the 61.8% Fib retracement level of the bearish wave.
Source: TradingView.com BTCUSD
A clear break above the $40,850 resistance may lead the price to move towards the $41,500 resistance. The next resistance is currently forming near $42,000. The price could go higher beyond the $42,000 level. The next major resistance level is $42,500.
Another drop in BTC?
If Bitcoin fails to rise above the $40,400 resistance zone, another decline could begin. Immediate support for the downside is near the $39,400 level.
The next major support is at $38,500. The price could gain bearish momentum if it closes below $38,500. If indicated, the price may reach the $37,000 support level in the near future.
Technical indicators:
Hourly MACD – MACD is currently losing pace in bearish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $39,400, then $38,500.
Key resistance levels – $40,400, $40,500 and $40,850.
Disclaimer: This article is provided for educational purposes only. This does not represent NewsBTC’s opinion on whether to buy, sell or hold any investment, and of course investing carries risks. We recommend that you do your own research before making any investment decisions. Your use of the information provided on this website is entirely at your own risk.