Bitcoin price started an upward correction from the $38,500 support zone. BTC could gain bullish momentum if it clears the $40,500 resistance zone.
- Bitcoin price is attempting a recovery wave from the $38,500 support zone.
- The price is below $40,000 and the 100 hourly simple moving average.
- A major bearish trend line is forming with resistance near $40,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may struggle to recover above the $40,400 and $40,500 resistance levels.
Bitcoin price is trying to recover
Bitcoin price continued its decline below the $40,000 support zone. BTC even rose below the $49,200 level and tested the $38,500 support zone. A new weekly low was formed at $38,518 and the price began an upward correction.
A recovery wave occurred above the $39,200 and $39,500 levels. However, Bitcoin is currently trading below $40,000 and the 100 hourly simple moving average.
The immediate resistance is near the $40,400 level. There is also a major bearish trend line forming with resistance near $40,400 on the hourly chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the downward wave from the swing high at $42,260 to the low at $38,518.
The next key resistance could be at $40,500, above which the price could rise and test $40,850. It is close to the 61.8% Fib retracement level of the downward wave from the swing high at $42,260 to the low at $38,518.
Source: BTCUSD on TradingView.com
A clear move above the $40,850 resistance could propel the price towards the $41,500 resistance. The next resistance is now forming near the $42,000 level. A close above the $42,000 level could push the price further higher. The next major resistance is at $42,500.
Another BTC decline?
If Bitcoin fails to rise above the $40,400 resistance zone, another decline could occur. The immediate downside support is near the $39,400 level.
The next major support is at $38,500. If the close is below $38,500, the price could gain bearish momentum. In the mentioned case, the price could reach the $37,000 support in the short term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Main support levels – $39,400, followed by $38,500.
Major resistance levels – $40,400, $40,500 and $40,850.
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