Bitcoin extended its decline and tested the $38,200 area against the US Dollar. BTC started a massive recovery wave and climbed above the $40,000 resistance level.
- Bitcoin’s decline extended, but remained stable above the $38,000 level.
- The price is now back below $40,000 and the 100 hourly simple moving average.
- There was a break above the major downtrend line with resistance near $39,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is eyeing further gains above the $40,500 and $40,950 resistance levels.
Bitcoin price recovers sharply
Bitcoin price remains in bearish territory after it Breaking the $39,200 support. BTC extended its decline below the $38,500 level, but the bulls were active near the $38,200 level.
A bottom was formed near $38,200 and the price started to increase significantly. The price rose above the $39,200 and $39,500 resistance levels. There was a move above the 23.6% Fib retracement level of the major decline from $42,950 to the low at $38,200.
Besides, there was a break above the 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 100-hour simple moving average.
There is an immediate resistance on the upside near the $40,550 level. It is close to the 50% Fib retracement level of the major decline from the $42,950 swing high to $38,200 low. The next major resistance might be $40,950. If there is a clear move above the $40,950 and $41,000 levels, the price may continue higher.
Source: BTCUSD on TradingView.com
In the mentioned case, the price could surpass the $41,200 resistance. The next major resistance might be near the $41,800 area.
Supporting Bitcoin dips?
If Bitcoin fails to break above the $41,000 resistance area, it may initiate a downward correction. There is immediate support on the downside 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 area could start another decline. In the aforementioned case, the price may drop to $39,000.
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Key support levels – $40,000, followed by $39,800.
Key resistance levels – $40,550, $40,950 and $41,800.