Bitcoin extended its decline below the $39,000 level against the US Dollar. BTC found support near the $38,550 zone and started a strong recovery wave.
Bitcoin extended decline below the $39,250 and $39,000 levels before it found support.The price is now trading above $40,000 and the 100 hourly simple moving average.There was a break above a major bearish trend line with resistance near $40,220 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair must clear the $41,500 resistance zone to start a major upward move.
Bitcoin Price Still Faces Hurdles
Bitcoin price followed a bearish path below the $40,000 level. BTC even traded below the $39,200 support and declined to a new weekly low.
It spiked below $39,000 and traded as low as $38,570. Recently, it started a strong recovery wave and climbed above the $40,000 resistance zone. There was a break above a major bearish trend line with resistance near $40,220 on the hourly chart of the BTC/USD pair.
Bitcoin is now trading above $40,000 and the 100 hourly simple moving average. It even traded above the $41,000 level but failed to clear the $41,500 resistance zone.
A high is formed near $41,334 and the price is now correcting gains. It is testing the 23.6% Fib retracement level of the recent increase from the $38,570 swing low to the $41,334 high. Immediate resistance on the upside is near the $41,000 level.
The next key resistance could be $41,350. The main resistance is still near the $41,500 zone. To start a strong upward move, the price must clear the $41,500 zone. In the stated case, the price may perhaps rise towards the $42,500 resistance zone. Any more gains could set the pace for a move towards the $43,200 level.
Fresh Decline in BTC?
If bitcoin fails to clear the $41,500 resistance zone, it could start another decline. Immediate support on the downside is near the $40,250 level and the 100 hourly simple moving average.
The next major support is seen near the $39,950 level. It is near the 50% Fib retracement level of the recent increase from the $38,570 swing low to $41,334 high. A downside break below the $39,950 support zone could push the price towards the $39,000 level.