BTC / USD
61,939.53
0.17%
(-104.56)
ETH / USD
3,411.42
0.07%
(+2.27)
XRP / USD
0.63
6.67%
(+0.04)
LTC / USD
89.16
5.85%
(+4.93)
EOS / USD
0.99
12.51%
(+0.11)
BCH / USD
411.09
30.48%
(+96.04)
ADA / USD
0.73
6.5%
(+0.04)
XLM / USD
0.13
6.29%
(+0.01)
NEO / USD
15.77
1.85%
(+0.29)
XEM / USD
0.05
0.99%
(-0)
DASH / USD
34.98
5.38%
(+1.79)
USDT / USD
1.00
0.04%
(0)
BNB / USD
407.96
0.09%
(+0.36)
QTUM / USD
4.03
6.09%
(+0.23)
XVG / USD
0.01
2.29%
(-0)
ONT / USD
0.30
3.34%
(+0.01)
ZEC / USD
30.40
4.05%
(+1.18)
STEEM / USD
0.28
2.21%
(+0.01)

Bitcoin Recovers Losses But Here’s Why $41.5K Could Prevent Gains

0

Bitcoin extended 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 $41,334 high. An immediate resistance on the upside is near the $41,000 level.

Source: BTCUSD on TradingView.com

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. An 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.

Technical indicators:

Hourly MACD – The MACD is now losing pace 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.

Leave A Reply

Your email address will not be published.