Bitcoin Near Make-or-Break Levels, Why 100 SMA Is The Key


Bitcoin started a recovery wave above the $38,400 resistance against the US Dollar. BTC needs to clear $39,600 to move into positive territory.

  • Bitcoin managed to stay above $37,650 and started an upward correction.
  • The price is now trading near $39,200 and the 100 hourly simple moving average.
  • There is a major bullish trend line forming with support near $39,220 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must break the resistance at $39,600 to start a proper increase in the near term.

Bitcoin price regains strength

Bitcoin price made a base above $38,000 and started to recovery wave. BTC broke the $38,400 and $38,500 resistance levels.

There was a move above the 50% Fib retracement level of the major decline from the $40,775 swing high to $37,672 low. Bitcoin surged above the $39,500 level, but faced sellers near the $39,600 level. It is now trading near $39,200 and Simple moving average per 100 hours.

There is also a major bullish trend line forming with support near $39,220 on the hourly chart of the BTC/USD pair. On the upside, there is an immediate resistance near the $39,600 level.

The 61.8% Fib retracement level of the major decline from the $40,775 high to $37672 is also near the $39,600 level. The next major resistance might be near the $40,000 area. A close above the $39,600 level and the 100 hourly simple moving average could open the door for a decent increase.

Bitcoin price

Source: BTCUSD on TradingView.com

In the mentioned case, the price could surpass the $40,000 resistance. The next major resistance might be near the $40770 area.

A new drop in bitcoin?

If Bitcoin fails to clear the $39,600 resistance area, it may start a new decline. There is immediate support on the downside near the $39,250 level.

The next major support is seen near the trend line and $39,200. A close below the $39,200 support area could start another decline. In the aforementioned case, the price may drop to $38,400.

Technical indicators:

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 – $39,200, followed by $38,400.

Key resistance levels – $39,600, $40K, and $40,770.



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