Bitcoin is consolidating above the $39,250 support area against the US Dollar. BTC could recover if it manages to clear the $40,250 resistance area.
- Bitcoin retested the $39,250 support area and found strong buying interest.
- The price is still trading below $41,000 and the 100 hourly simple moving average.
- There is a solid bearish trend line forming with resistance near $40,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a short-term recovery if there is a move above $40,250.
Bitcoin price still supported
Try bitcoin price Correction upside above the $40,000 level. BTC rose above the $40,400 level, but the bears remained active.
It appears that the price struggled to stay above the 23.6% Fib retracement level of the major decline from the $43,416 swing high of the $39,240 low. A rally formed near $40,800 and the price started declining again. There was a break below the $40,000 level, but the bulls once again defended the $39,250 area.
It is now consolidating near the $40,000 level, but it is well below 100-hour simple moving average. There is an immediate resistance on the upside near the $40,250 level. There is also a solid bearish trend line forming with resistance near $40,250 on the hourly chart of the BTC/USD pair.
A clear move above the trend line could send the price towards $40,800. The next resistance might be near $41,250. It is close to the 50% Fib retracement level of the major decline from the $43,416 swing high of the $39,240 low.
Source: BTCUSD on TradingView.com
If the bulls manage to surpass the $41,250 and $41,350 resistance levels, the price could accelerate higher. In the mentioned case, the price may rise towards the $41,800 resistance area or the 100 hourly simple moving average.
Another drop in bitcoin?
If Bitcoin fails to clear the $40,250 resistance area, it may continue to move lower. There is immediate support on the downside near the $39,600 level.
The next major support is seen near the $39,250 level. A downside breakout below the $39,250 support area could accelerate losses. In the mentioned case, the price could drop towards the level of $38,500 or even $38,000.
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just above the 50 level.
The main support levels are $39,600, followed by $39,250.
The main resistance levels are $40,250, $41,250 and $41,800.