Bitcoin price is aiming for an upward break above the $40,500 resistance. BTC bulls could face strong resistance at $40,850 and $41,350.
- Bitcoin price is attempting a recovery wave from the $38,500 support zone.
- The price is just above $40,000 and the 100 hourly simple moving average.
- A key bearish trend line is forming with resistance near $40,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair may struggle to settle above the $40,400 and $40,500 resistance levels.
Bitcoin price foresees an upward trend
Bitcoin price remained well bid above the $38,500 support zone. BTC formed a base and recently began a consolidation phase above the $39,000 level.
The price was able to recover above the 23.6% Fib retracement level of the downward move from the swing high at $42,261 to the low at $38,518. Bulls appear to be active above the $39,200 and $39,350 levels. Bitcoin is currently trading just above $40,000 and the 100 hourly simple moving average.
However, there are many hurdles near $40,400. The immediate resistance is near the $40,250 level. A key bearish trend line is also forming with resistance near $40,250 on the hourly chart of the BTC/USD pair.
The next key resistance could be at $40,380 or the 50% Fib retracement level of the downward move from the swing high at $42,261 to low at $38,518, above which the price could rise and test $40,850. A clear move above the $40,850 resistance could propel the price towards the $41,250 resistance.
Source: BTCUSD on TradingView.com
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 mistake with BTC?
If Bitcoin fails to rise above the $40,380 resistance zone, another decline could occur. The immediate downside support is near the $39,420 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 fall towards 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 – $39,420, followed by $38,500.
Major resistance levels – $40,250, $40,400 and $40,850.
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