Bitcoin price makes up for losses and trades over $ 40,000 against the US dollar. BTC will likely accelerate higher if there is a significant break above the 100-hour SMA at $ 42,000.
- Bitcoin is showing signs of decent rebound above the $ 40,000 level.
- The price is now facing resistance near $ 42,000 and the 100-hour simple moving average.
- On the hourly chart of the BTC / USD pair (data feed from Kraken) there was a break above a large bearish trendline with resistance near USD 42,000.
- The pair is likely to start a strong rally if it levels above $ 42,000 and the 100-hour SMA.
Bitcoin price starts recovery
Bitcoin remained stable above the $ 36,500 and $ 38,000 support levels. BTC extended its recovery wave above the USD 40,000 resistance level and moved into a short-term positive zone.
There was a significant break above the 50% Fib retracement level of the last major decline from the $ 45,774 swing high to the $ 29,748 swing lows. Additionally, there was a break above a large bearish trendline with resistance near USD 42,000 on the hourly chart of the BTC / USD pair.
The pair is now facing resistance near $ 42,000 and the 100 hour simple moving average. The 76.4% fib retracement level of the last major decline from the $ 45,774 swing high to the $ 29,748 swing low also acts as resistance.
Source: BTCUSD on TradingView.com
A clear break above the $ 42,000 zone and the 100 hour simple moving average could open the doors to a bigger rally. Immediate resistance is near the $ 43,200 level. The next major resistance is near the $ 45,775 level. A closing price above the $ 45,775 level could set the pace for a move towards the $ 48,000 resistance zone.
Fresh drop of BTC?
If Bitcoin fails to break the $ 42,000 resistance, it risks falling again. Initial downside support is near the $ 40,000 level.
The first major support is now forming near the $ 38,000 zone. A downside break below the USD 38,000 support could in the short term trigger another drop towards the USD 35,000 support zone.
Hourly MACD – The MACD is slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is now above the 50 level.
Major Support Levels – $ 40,000, followed by $ 38,000.
Main Resistance Levels – $ 42,000, $ 43,200, and $ 45,775.