Yesterday, BTC found support near the $38,550 zone, where it started a strong recovery wave. According to technical analysis by Aayush Jindal of NewsBTC:
Bitcoin Still Faces Barriers
Bitcoin traded even below the $39,200 support yesterday and formed a new weekly bottom. It declined below $39,000 and slumped as low as $38,570. It then 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 currently trading above $40,000 and the 100 hourly simple moving average. It even traded above the $41,000 level but failed to surpass the $41,500 resistance area. A top was formed near $41,334 and the price is now correcting gains. It is testing the 23.6% Fib retracement level of the recent rise from the $38,570 high to $41.334 high.
An immediate resistance is near the $41,000 level. The next key resistance could be $41,350. The main resistance is still near the $41,500 area. To start a strong upward move, the price must surpass the $41,500 zone. In the stated case, the price could rise towards the $42,500 resistance zone. Any further gains could set the pace for a move towards the $43,200 level.
Will Bitcoin Drop?
Jindal says that if Bitcoin fails to break past the $41,500 resistance zone, it could start another decline. An immediate support is near the $40,250 level and the 100 hourly simple moving average. The next major support is seen near the $39,950 level. This is close to the 50% Fib retracement level of the rise from the $38,570 high to $41,334 high. A downside break below the $39,950 support zone could push the price towards the $39,000 level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now 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 – $40,250 followed by $39,950
- Major Resistance Levels – $41,350, 41,500 and 42,500
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