Bitcoin’s decline extended below the $38,000 level against the US dollar. BTC is recovering, but it must clear $39,000 to continue the uptrend.
- Bitcoin remains in bearish territory below $40K and $39,000.
- The price is now trading below $39,000 and the 100 hourly simple moving average.
- There was a break above the major downtrend line with resistance near $38,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair must break the $39,000 resistance to continue rising in the near term.
Bitcoin price recovery wave
Bitcoin price gained bearish momentum after that Breaking the $39,000 support area. Bitcoin traded even below $38,000 and settled below the 100 hourly simple moving average.
There was a rally below the $37,500 support area. A bottom was formed near $37399 and the price is now correcting higher. There was a move above the $38,000 and $38,200 resistance levels. There was also a break above the major downtrend line with resistance near $38,000 on the hourly chart of the BTC/USD pair.
Bitcoin price even rose above the 23.6% Fib retracement level of the major decline from the $40,349 swing high to $37,399. It is now facing resistance near the $38,800 level 100-hour simple moving average.
The 50% Fib retracement level of the major decline from the $40,349 high to $37,399 is also near the $38,800 area to act as resistance. The next major resistance might be near the $39,000 area. A close above $39,000 may open the door to a decent increase.
Source: BTCUSD on TradingView.com
In the mentioned case, the price could surpass the $39.250 resistance. The next major resistance might be near the $40,000 area.
A new drop in bitcoin?
If Bitcoin fails to break above the $39,000 resistance area, it may start a new decline. There is immediate support on the downside near the $38,400 level.
The next major support appears near the $38,000 level. A clear break below the $38,000 support area could push the price below $37,500. Any further losses may require a test of the $36,400 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 – $38,400, followed by $38,000.
The main resistance levels are $38,800, $39,000 and $39,200.