Bitcoin is showing positive signs above $39,500 against the US Dollar. BTC must clear $40,250 to continue higher in the near term.
- Bitcoin started another wave of recovery and climbed above the $39,800 level.
- The price is now trading above $39,500 and the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $39,580 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must cross the $40,250 resistance to continue rising in the near term.
Breaking the eyes of the Bitcoin price upside down
Bitcoin price starts fresh recovery wave Above the $38,500 resistance level. BTC liquidated the $39,250 and $39,500 resistance levels to move into positive territory.
There was a move above the 50% Fib retracement level of the major decline from $40,774 to the $37,674 swing high. There is also a major bullish trend line forming with support near $39,580 on the hourly chart of the BTC/USD pair.
Bitcoin price is now trading above $39,500 and 100-hour simple moving average. It even jumped above the $40,000 resistance level.
However, there was no close above the 76.4% Fib retracement level of the major decline from $40,774 to the $37,670 swing high. On the upside, there is immediate resistance near the $40,000 level. The next major resistance might be near the $40,250 area.
Source: BTCUSD on TradingView.com
A close above the $40,250 level may open the door for a decent increase. In the mentioned case, the price could surpass the $40,800 resistance. The next major resistance might be near the $41,250 area.
A new drop in bitcoin?
If Bitcoin fails to clear the $40,250 resistance area, it may start a new low. There is immediate support on the downside near the $39.750 level.
The next major support is seen near the trend line, $39,580. A clear break below the trend line support and $39,500 could open the door to a new decline. In this case, the price may drop towards the $39,000 level. Any further losses may require a test of the $38,400 support.
Hourly MACD The MACD is slowly losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $39,580, followed by $38,400.
The main resistance levels are $40,250, $40,800 and $41,250.