Bitcoin price is aiming for an upside break above the USD 40,500 resistance. BTC bulls may face heavy resistance near USD 40,850 and USD 41,350.
- Bitcoin price is trying to mount a recovery wave from the USD 38,500 support zone.
- The price is trading just above $40,000 and the 100 hourly Simple Moving Average.
- A crucial bearish trendline is forming with resistance near $40,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could struggle to settle above the USD 40,400 and USD 40,500 resistance levels.
Bitcoin Price Looks to Breakout Upward
Bitcoin price remained well above the USD 38,500 support zone. BTC formed a base and recently started a consolidation phase above the USD 39,000 level.
The price was able to recover above the 23.6% Fib retracement level of the downward move from the $42,261 swing high to the $38,518 low. The bulls seem to be active above the USD 39,200 and USD 39,350 levels. Bitcoin is now trading just above $40,000 and the 100 hourly Simple Moving Average.
However, there are many hurdles near $40,400. The immediate resistance is near the USD 40,250 level. A crucial bearish trendline is also forming with resistance around $40,250 on the hourly chart of the BTC/USD pair.
The next major resistance could be $40,380 or the 50% Fib retracement level of the downward move from the $42,261 swing high to the $38,518 low, above which the price could rise and test $40,850. A clear move above the USD 40,850 resistance could send the price towards the USD 41,250 resistance.
Source: BTCUSD on TradingView.com
The next resistance is now forming around the $42,000 level. A close above the USD 42,000 level could push the price further higher. The next major resistance is at $42,500.
Another failure in BTC?
If Bitcoin fails to rise above the USD 40,380 resistance zone, it could trigger another decline. The immediate downside support is near the $39,420 level.
The next major support is $38,500. If there is a close below $38,500, the price may gain bearish momentum. In the said case, the price could dive towards the $37,000 support in the short term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – USD 39,420, followed by USD 38,500.
Major resistance levels – $40,250, $40,400 and $40,850.
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