Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Bitcoin attempted a fresh increase above $39,500 against the US Dollar. BTC is still facing a strong resistance near $39,800 and $40,000.
- Bitcoin spiked above $39,500, but it failed to clear the $40,000 resistance zone.
- The price is trading near $39,000 and the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance near $38,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must clear the $39,800 and $40,000 resistance levels to start a fresh increase.
Bitcoin Price Faces Hurdle
Bitcoin price started a recovery wave above the $38,200 resistance level. BTC even spiked above the $38,500 resistance level, but it faced a strong resistance.
During the recovery, there was a break above a key bearish trend line with resistance near $38,750 on the hourly chart of the BTC/USD pair. The pair climbed above the $39,800 level and the 100 hourly simple moving average. However, it faced a strong resistance just below the $40,000 level.
A high was formed near $39,899 and the price corrected gains. There was a move below the $39,500 level. Bitcoin declined below the 23.6% Fib retracement level of the upward move from the $37,593 swing low to $39,899 high.
It is now trading near $39,000 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $39,550 zone. The next major resistance could be near the recent high or $39,900. The main breakout resistance is still near the $40,000 zone.
Source: BTCUSD on TradingView.com
A close above the $40,000 resistance zone could open the doors for a steady increase. In the stated case, the price could rise towards the $42,000 resistance zone.
Fresh Decline in BTC?
If bitcoin fails to clear the $39,550 resistance zone, it could continue to move down. An immediate support on the downside is near the $39,000 zone.
The next major support is seen near the $38,750 level. It is near the 50% Fib retracement level of the upward move from the $37,593 swing low to $39,899 high. The main support sits near the $38,500 level, below which there is a risk of a sharp decline.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $38,750, followed by $38,500.
Major Resistance Levels – $39,550, $39,900 and $40,000.
