Bitcoin Attempts Recovery, Why Uptrend Remains Limited
Bitcoin attempted to break through $39,500 against the US dollar. BTC is still encountering significant resistance near $39,800 and $40,000
Bitcoin attempted to break through $39,500 against the US dollar. BTC is still encountering significant resistance near $39,800 and $40,000. BITCOIN rose above $39,500 but failed to break through the $40,000 resistance level. The price is currently trading near the $39,000 mark and the 100 hourly simple moving average.
On the hourly chart of the BTC/USD pair, there was a break above a key bearish trend line with resistance near $38,750. The pair must break through the $39,800 and $40,000 resistance levels to begin a new uptrend.
Bitcoin’s Price is Under Pressure
Bitcoin’s price has begun a resurgence above the $38,200 resistance level. BTC even broke through the $38,500 resistance level, but it was met with stiff opposition. The BTC/USD pair broke beyond a critical bearish trend line with resistance near $38,750 on the hourly chart during the recovery. The pair’s price has risen above the $39,800 level and the 100 hourly simple moving average. However, it encountered stiff resistance just below the $40,000 mark.
A high near $39,899 was formed, and the price corrected gains. There was a drop below the $39,500 mark. Bitcoin fell below the 23.6 percent Fib retracement level of the upward move from the swing low of $37,593 to the high of $39,899.
It is currently trading close to the $39,000 mark and the 100 hourly simple moving average. On the upside, immediate resistance is near $39,550. The next significant resistance level could be near the recent high, or $39,900. The main resistance for a breakout is still near the $40,000 level. A close above the $40,000 resistance level could pave the way for a steady rise. The price could rise to the $42,000 resistance level in the aforementioned scenario.
Is There a New BTC Drop?
If bitcoin fails to break through the $39,550 resistance level, it may continue to fall. On the downside, there is immediate support near $39,000.
The next significant support level is seen near $38,750. It is close to the 50% Fib retracement level of the upward move from the swing low of $37,593 to the high of $39,899. The primary support is near the $38,500 level, below which a sharp decline is possible.
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