TA: Bitcoin Technical Indicators Suggest Short-Term Recovery To $41.3K

Aayush Jindal

3 years ago

2 mins read

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Bitcoin is consolidating above the $39,250 support zone against the US Dollar. BTC could recover if it manages to clear the $40,250 resistance zone.

Bitcoin retested the $39,250 support zone and found a strong buying interest.
The price is still trading below $41,000 and the 100 hourly simple moving average.
There is a connecting bearish trend line forming with resistance near $40,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a short-term recovery if there is a move above $40,250.

Bitcoin Price Remains Supported

Bitcoin price attempted an upside correction above the $40,000 level. BTC climbed above the $40,400 level, but the bears remained active.

It seems like the price struggled to stay above the 23.6% Fib retracement level of the key decline from the $43,416 swing high from the $39,240 low. A high was formed near $40,800 and the price started another decline. There was a break below the $40,000 level, but the bulls again defended the $39,250 zone.

It is now consolidating near the $40,000 level, but it is well below the 100 hourly simple moving average. An immediate resistance on the upside is near the $40,250 level. There is also a connecting bearish trend line forming with resistance near $40,250 on the hourly chart of the BTC/USD pair.

A clear move above the trend line could send the price towards $40,800. The next resistance could be near $41,250. It is close to the 50% Fib retracement level of the key decline from the $43,416 swing high from the $39,240 low.

Source: BTCUSD on TradingView.com

If the bulls able to clear the $41,250 and $41,350 resistance levels, the price could accelerate higher. In the stated case, the price may perhaps rise towards the $41,800 resistance zone or the 100 hourly simple moving average.

Another Decline in BTC?

If bitcoin fails to clear the $40,250 resistance zone, it could continue to move down. An immediate support on the downside is near the $39,600 level.

The next major support is seen near the $39,250 level. A downside break below the $39,250 support zone could accelerate losses. In the stated case, the price could decline towards the $38,500 level or even $38,000.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just above the 50 level.

Major Support Levels – $39,600, followed by $39,250.

Major Resistance Levels – $40,250, $41,250 and $41,800.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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