Bitcoin Price Attempts Recovery
The price of Bitcoin is currently trying to recover after a decline that took it below the $40,000 support zone. It even dipped below $38,500 and reached a new weekly low at around $38,518. However, there has been an upside correction.
Bitcoin has managed to regain some ground and move above the $39,200 and $39,500 levels. But it is still trading below $40,000 and the 100 hourly Simple Moving Average (SMA).
Resistance Levels to Watch
There is a significant bearish trend line forming on the BTC/USD hourly chart with resistance near $40,400. This trend line is close to the 50% Fibonacci retracement level of the downward wave from the $42,260 swing high to the $38,518 low.
If Bitcoin manages to break above this trend line and surpasses the $40,500 resistance level, it could continue its recovery and test the $40,850 level. The next major resistance sits at $42,000.
Possible Drop in BTC
If Bitcoin fails to rise above the $40,400 resistance zone, it may experience another decline. The immediate support on the downside is near $39,400. The next major support level is at $38,500.
A close below $38,500 could indicate bearish momentum and potentially push the price down towards the $37,000 support level in the near future.
Technical Indicators
The MACD (Moving Average Convergence Divergence) on the hourly chart shows that Bitcoin is losing momentum in the bearish zone. The RSI (Relative Strength Index) for BTC/USD is currently above the 50 level.
Major support levels to watch are $39,400 and $38,500, while major resistance levels are $40,400, $40,500, and $40,850.
Hot Take: Bitcoin’s Recovery Attempt Faces Resistance
Bitcoin is currently attempting to recover from its recent decline below the $40,000 support zone. However, it is facing significant resistance near the $40,400 level. If it fails to break above this level, another drop could be on the horizon. Immediate support lies at $39,400, but a close below $38,500 could lead to further bearish movement. Technical indicators suggest mixed signals, with the MACD losing pace in the bearish zone and the RSI above 50. Traders should closely monitor key levels such as $40,400 and $38,500 for potential breakout or breakdown scenarios.
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