Bitcoin price is targeting an upward breakout above the $40,500 resistance level. BTC bulls may face strong resistance near $40,850 and $41,350.
- Bitcoin price is attempting to recover from the $38,500 support zone.
- The price is trading just above $40,000 and the 100-hour simple moving average.
- On the hourly chart of the BTC/USD pair (data feed from Kraken), there is a significant bearish trendline forming with resistance near $40,250.
- The pair may struggle to break above the $40,400 and $40,500 resistance levels.
Bitcoin price rise reverses
Bitcoin price remained above the $38,500 support zone. BTC has formed a base and recently began a consolidation phase above the $39,000 level.
The price was able to recover above the 23.6% Fib retracement level of the downward move from the $42,261 swing high to the $38,518 low. The bulls appear to be active above the $39,200 and $39,350 levels. Bitcoin is currently trading just above $40,000 and the 100-hour simple moving average.
However, there are many hurdles near $40,400. Immediate resistance is near the $40,250 level. On the hourly chart of the BTC/USD pair, there is also a significant bearish trend line forming with resistance near $40,250.
The next major resistance could be the 50% Fib retracement level at $40,380 or a downward move from the $42,261 swing high to the $38,518 low, above which the price could rise to test $40,850. A clear break above the $40,850 resistance may lead the price towards the $41,250 resistance.
Source: TradingView.com BTCUSD
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 failure for BTC?
If Bitcoin fails to rise above the $40,380 resistance zone, another decline could begin. Immediate support for the downside is near the $39,420 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 plunge towards the support level of $37,000 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 – $39,420, then $38,500.
Key resistance levels – $40,250, $40,400 and $40,850.
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