Why Bitcoin Price Could Eye Strong Recovery Above $41.5K


Bitcoin corrects losses and trades above $41,000 against the US Dollar. BTC could gain bullish momentum above $41,350 and $41,500.

  • Bitcoin stayed in good shape above $39,250 and started a fresh increase.
  • The price is now trading above $41,000 and the 100 hourly simple moving average.
  • There was a break above the descending trend line connected with resistance near $40,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could gain pace if there is a clear move above the $41,500 resistance area.

Breaking the eyes of the Bitcoin price upside down

Bitcoin price keep trying Above the $39,250 support area. BTC formed a base and started a new increase above the $40,000 resistance area.

The bulls gained steam and managed to push the price above $40,500. There was a move above the 23.6% Fib retracement level of the major decline from the $43,415 swing high, from the $39,240 low. Besides, there was a break above the connecting descending trend line with resistance near $40,000 on the hourly chart of the BTC/USD pair.

The pair even broke the $41,000 resistance area and settled above 100-hour simple moving average. There is immediate resistance on the upside near the $41,350 level.

The 50% Fib retracement level of the major decline from the $43,415 swing high from the $39,240 low is also near the $41,350 region. The next major resistance could be $41,500. If the bulls manage to surpass the $41,350 and $41,500 resistance levels, the price could accelerate higher.

Bitcoin price

Source: BTCUSD on TradingView.com

In the mentioned case, the price may rise towards the $41,800 resistance area. Any further gains could set the pace for a move towards the $42,500 level in the near term.

Another drop in bitcoin?

If Bitcoin fails to clear the $41,500 resistance area, it may start dropping again. There is immediate support on the downside near the $41,000 level.

The next major support is seen near the $40,550 level. A downside breakout below the $40,550 support area could accelerate losses. In the mentioned case, the price could drop towards the $40,000 level or even $39,250.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in bullish territory.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.

Key support levels – $41,000, followed by $40,550.

Key resistance levels – $41,350, $41,500 and $41,800.



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