Bitcoin Recovers Losses But Here’s Why $41.5K Could Prevent Gain
Bitcoin extended decline below the $39,000 level a. BTC found support near the $38,550 zone and started a strong recovery wave. 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 /USDT pair.
Bitcoin is now trading above $40,000 and the 100 hourly simple moving average . It even traded above the $40,500 level, but failed to clear the $41,500 resistance zone .
A high is formed near $41,334 and the price is now correcting gains. An immediate resistance on the upside is near the $41,000 level. 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.
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. 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 /USDT 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.
DISCLAIMER: The analysis of cryptocurrencies in real-time should be taken for informational purposes only, and in no case should it be taken as an investment signal. Every investment and trading move involves risk. You should conduct your own research when making a decision.
