Bitcoin Recovers Above $40K Support – Quick Technical Outlook
Bitcoin has continued to fall below the $39,000 level against the US dollar, BTC found support near $38,550 and began a strong recovery wave. Bitcoin fell below the $39,250 and $39,000 levels before finding support. Currently, the price is trading above $40,000 and above the 100 hourly simple moving average. On the hourly chart of the BTC/USD pair, there was a break above a significant bearish trend line with resistance near $40,220.
To begin a significant upward movement, the pair must break through the $41,500 resistance zone.
Bitcoin’s Price is Still Under Pressure
Bitcoin’s price has fallen below $40,000, indicating a bearish trend. BTC even fell below the $39,200 support level, setting a new weekly low. It fell below $39,000 and reached a low of $38,570. It has recently begun a strong recovery wave and has risen above the $40,000 resistance zone. On the hourly timeframe of the BTC/USD pair, there was a break above a major bearish trend line with resistance near $40,220.
Bitcoin is currently trading above $40,000 and above the 100 hourly simple moving average. It even traded above $41,000 but failed to break through the $41,500 resistance zone.
A high near $41,334 has been formed, and the price is now correcting gains. It is approaching the recent increase’s 23.6 percent Fib retracement level from the swing low of $38,570 to the high of $41,334. On the bullish side, immediate resistance is near the $41,000 level.
The next significant resistance level could be $41,350. The main resistance is still around $41,500. To begin a strong upward move, the price must break through the $41,500 level. In the aforementioned scenario, the price may rise towards the $42,500 resistance zone. Any further gains could set the stage for a move towards $43,200.
Is There a New BTC Drop?
If Bitcoin fails to break through the $41,500 resistance mark, it may begin a new downtrend. On the downside, there is next support near the $40,250 level and the 100 hourly simple moving average.
The next significant support is seen near $39,950. It is close to the 50% Fib retracement level of the recent rise from the $38,570 swing low to the $41,334 high. If the price falls below the $39,950 support zone, it may move towards the $39,000 level. Good luck!
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