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.
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.
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.