Bitcoin started a recovery wave above the $38,400 resistance. According to technical analysis by NewsBTC’s Aayush Jindal, it needs to surpass $39,600 to move into positive territory.
Bitcoin Rebounds
Bitcoin formed a bottom above $38,000 and started a recovery wave. It broke the $38,400 and $38,500 resistance levels. There was a move above the 50% Fib retracement level of the decline from the $40,775 low to $37,672 low. Bitcoin even climbed above the $39,500 level but faced sellers near the $39,600 level. It is now trading near $39,200 and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $39,220 on the hourly chart of the
BTC/USD pair. An immediate resistance is near the $39,600 level. The 61.8% Fib retracement level of the drop from the $40,775 low to $37,672 low is also near the $39,600 level. The next key resistance could be near the $40,000 zone. A close above the $39,600 level and the 100 hourly simple moving average could open the doors for a decent increase. In the stated case, it could even surpass the $40,000 resistance. The next major resistance could be near the $40,770 area.
Will Bitcoin Drop Again?
Jindal says that if Bitcoin fails to break through the $39,600 resistance zone, it could start a fresh decline. An immediate support is near the $39,250 level. The next major support is seen near the trendline and $39,200. A close below the $39,200 support zone could start another decline. In the stated case, it could drop to $38,400.
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 – 39,200 then $38,400
- Major Resistance Levels – 39,600, 40,000 and 40,770
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