Bitcoin price compensates for losses against the US Dollar. If there is a clear break above the 100 hour SMA at $ 42,000, BTC is likely to accelerate further.
- Bitcoin is showing signs of recovery.
- The price is currently facing resistance near $ 42,000 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance around $ 42,000 on the hourly chart of the BTC / USD pair (data from Kraken).
- The pair is likely to start a strong rally if it breaks above $ 42,000 and the 100 hourly SMA.
Bitcoin (BTC) Price Starts To Improve
Bitcoin remained stable above the $ 36,500 and $ 38,000 support levels. BTC pushed the recovery wave above the $ 40,000 resistance level and moved into a short-term positive zone.
There was a clear break above the 50% Fib retracement level of the last significant drop from $ 45,774 to $ 29,748. Moreover, there was a break above a major bearish trend line with resistance around $ 42,000 on the hourly chart of the BTC / USD pair.
The pair is currently facing resistance near $ 42,000 and the 100 hourly simple moving average. The 76.4% Fib retracement level of the last significant drop from $ 45,774 to $ 29,748 also serves as a resistance.
A clear break above the $ 42,000 zone and the 100 hourly simple moving average could open the doors for a bigger rally. Instant resistance is near the $ 43,200 level. The next major resistance is near the $ 45,775 level. A close above the $ 45,775 level could set the pace of a move towards the $ 48,000 resistance zone.
Will Bitcoin (BTC) Fall?
If Bitcoin fails to clear the $ 42,000 resistance, there is a risk of a new decline. Initial support on the downside is near the $ 40,000 level.
The first major support is currently occurring near the $ 38,000 zone. A downside break below the $ 38,000 support could initiate a new decline towards the $ 35,000 support zone in the near term.
- Hourly MACD – The MACD is slowly slowing down in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is currently above the 50 level.
- Major Support Levels – $ 40,000 followed by $ 38,000
- Major Resistance Levels – $ 42,000, $ 43,200 and $ 45,775