Bitcoin Price Eyes Recovery But Can BTC Bulls Regain Strength?

Bitcoin price is aiming for an upside break above the $40,500 resistance. BTC bulls could face heavy resistance near $40,850 and $41,350.

• Bitcoin price is attempting a recovery wave from the $38,500 support zone.
• The price is trading just above $40,000 and the 100 hourly Simple moving average.
• There is a crucial bearish trend line 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 $40,400 and $40,500 resistance levels.

Bitcoin Price Eyes Upside Break

Bitcoin price remained well-bid above the $38,500 support zone. BTC formed a base and recently started a consolidation phase above the $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 $39,200 and $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. Immediate resistance is near the $40,250 level. There is also a crucial bearish trend line forming with resistance near $40,250 on the hourly chart of the BTC/USD pair.

The next key 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 $40,850 resistance could send the price toward the $41,250 resistance.

Source: BTCUSD on TradingView.com

The next resistance is now forming near the $42,000 level. A close above the $42,000 level could push the price further higher. The next major resistance sits at $42,500.

Another Failure In BTC?

If Bitcoin fails to rise above the $40,380 resistance zone, it could start another decline. Immediate support on the downside is near the $39,420 level.

The next major support is $38,500. If there is a close below $38,500, the price could gain bearish momentum. In the stated case, the price could dive toward the $37,000 support in the near 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 – $39,420, followed by $38,500.

Major Resistance Levels – $40,250, $40,400, and $40,850.

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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