Bitcoin attempted another increase over $39,500 against the US dollar. BTC is still facing strong resistance near $39,800 and $40,000.
Bitcoin peaked above $39,500 but failed to clear the $40,000 resistance zone. The price is trading near $39,000 and the 100 hourly simple moving average. There was a break above a key bearish trendline with resistance near $38,750 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair needs to clear the USD 39,800 and USD 40,000 resistance levels to start a fresh rise.
Bitcoin price faces hurdle
Bitcoin price started a recovery wave above the $38,200 resistance level. BTC even spiked above the $38,500 resistance level, but faced strong resistance.
During the recovery, there was a break above a key bearish trendline with resistance near $38,750 on the hourly chart of the BTC/USD pair. The pair climbed above the $39,800 level and the 100 hourly simple moving average. However, it faced a strong resistance just below the $40,000 level.
It highs near $39,899 and the price corrected gains. There was a move below the $39,500 level. Bitcoin fell below the 23.6% Fib retracement level from the upward move from the $37,593 swing low to the $39,899 high.
It is now trading near $39,000 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $39,550 zone. The next major resistance could be near the recent high of $39,900. The main breakthrough resistance is still near the $40,000 zone.
Source: BTCUSD on TradingView.com
A close above the $40,000 resistance zone could open the doors for a steady rise. In the mentioned case, the price could climb towards the $42,000 resistance zone.
New decline in BTC?
If bitcoin fails to clear the $39,550 resistance zone, it could continue to fall. An immediate support on the downside is near the $39,000 zone.
The next major support is seen near the USD 38,750 level. It is near the 50% Fib retracement level of the upward move from the $37,593 swing low to the $39,899 high. The main support is near the USD 38,500 level, below which there is a risk of a sharp decline.
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.
Key support levels – $38,750, followed by $38,500.
Major resistance levels – $39,550, $39,900 and $40,000.