Bitcoin extended the decline and tested the $38,200 area against the US Dollar. BTC launched a major rally wave and broke above the $40,000 resistance.
- Bitcoin extended the decline, but remained stable above the $38,000 level.
- The price is now back above $40,000 and the 100 hourly simple moving average.
- There was a break above a major bearish trendline with resistance near $39,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is eyeing further upside above the $40,500 and $40,950 resistance levels.
Bitcoin price recovers strongly
Bitcoin price remained in a bearish zone after breaking the support at $39,200. BTC extended the decline below the $38,500 level, but bulls were active near the $38,200 level.
A bottom formed near $38,200 and the price began a significant increase. The price climbed above the resistance levels of $39,200 and $39,500. There was a move above the 23.6% Fib retracement level from the key swing low of $42,950 to the $38,200 low.
Additionally, there was a break above a major downtrend line with resistance near $39,550 on the hourly chart of the BTC/USD pair. Bitcoin is now back above $40,000 and the 100 hourly simple moving average.
An immediate resistance on the upside is near the $40,550 level. It is near the 50% Fib retracement level of the key swing decline from the $42,950 swing low to $38,200 low. The next key resistance could be $40,950. If there is a clear move above the $40,950 and $41,000 levels, the price could continue higher.
Source: BTCUSD on TradingView.com
In the indicated case, the price might even break above the resistance at $41,200. The next major resistance could possibly be seen near the $41,800 area.
Dips supported in BTC?
If bitcoin fails to clear the $41,000 resistance zone, it could trigger a downward correction. An immediate support on the downside is near the $40,000 level.
The next major support is seen near the $39,800 level and the 100 hourly simple moving average. A close below the $39,800 support zone could initiate a further decline. In the indicated case, the price could drop to $39,000.
Hourly MACD – The MACD is slowly accelerating in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Main support levels – $40,000, followed by $39,800.
Main resistance levels – $40,550, $40,950 and $41,800.