Bitcoin is showing positive signals above $39,500. According to technical analysis by NewsBTC’s Aayush Jindal, it must surpass $40,250 to continue rising in the near term.
Is Bitcoin Targeting Up?
Bitcoin started a fresh recovery wave above the $38,500 resistance level. BTC surpassed the $39,250 and $39,500 resistance levels to move into positive territory. There was a move above the 50% Fib retracement level of the main decline from the $40,774 high to $37,670 high. There is also a major bullish trend line forming with support near $39,580 on the hourly chart of the BTC/USD pair.
Bitcoin is currently trading above $39,500 and the 100 hourly simple moving average. It even broke above the $40,000 resistance. However, there was no close above the 76.4% Fib retracement level of the main drop from the $40,774 high to $37,670 low. An immediate resistance is near the $40,000 level. The next key resistance could be near the $40,250 area.
$40,250 Crucial
A close above the $40,250 level could open the doors for a decent increase. In the stated case, it could even surpass the $40,800 resistance. The next major resistance could be near the $41,250 area.
Will Bitcoin Drop?
Jindal says that if Bitcoin fails to break through the $40,250 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $39,750 level. The next major support is near the trend line and $39,580 is seen. A clear break below the trendline support and $39,500 could open the doors for a fresh decline. In this case, the price could decline to the $39,000 level. Any further losses may require testing of the $38,400 support.
What Do Technical Indicators Say?
- 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.
- Major Support Levels – 39,580 followed by $38,400
- Major Resistance Levels – $40,250, 40,800 and 41,250
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