Bitcoin Attempts Fresh Increase, Why Upsides Remain Capped

Bitcoin attempted a fresh increase above $39,500 against the US Dollar. BTC is still facing a strong resistance near $39,800 and $40,000.

Bitcoin spiked above $39,500, but it failed to clear the $40,000 resistance zone.
The price is trading near $39,000 and the 100 hourly simple moving average.
There was a break above a key bearish trend line with resistance near $38,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair must clear the $39,800 and $40,000 resistance levels to start a fresh increase.

Bitcoin Price Faces Hurdle
Bitcoin price started a recovery wave above the $38,200 resistance level. BTC even spiked above the $38,500 resistance level, but it faced a strong resistance.
During the recovery, there was a break above a key bearish trend line with resistance near $38,750 on the hourly chart of the BTC/USD pair. The pair climbed above the $39,800 level and the 100 hourly simple moving average. However, it faced a strong resistance just below the $40,000 level.
A high was formed near $39,899 and the price corrected gains. There was a move below the $39,500 level. Bitcoin declined below the 23.6% Fib retracement level of the upward move from the $37,593 swing low to $39,899 high.
It is now trading near $39,000 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $39,550 zone. The next major resistance could be near the recent high or $39,900. The main breakout resistance is still near the $40,000 zone.

Source: BTCUSD on TradingView.com
A close above the $40,000 resistance zone could open the doors for a steady increase. In the stated case, the price could rise towards the $42,000 resistance zone.
Fresh Decline in BTC?
If bitcoin fails to clear the $39,550 resistance zone, it could continue to move down. An immediate support on the downside is near the $39,000 zone.
The next major support is seen near the $38,750 level. It is near the 50% Fib retracement level of the upward move from the $37,593 swing low to $39,899 high. The main support sits near the $38,500 level, below which there is a risk of a sharp decline.
Technical indicators:
Hourly MACD – The MACD is now 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 – $38,750, followed by $38,500.
Major Resistance Levels – $39,550, $39,900 and $40,000.

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 16,962.08
ethereum
Ethereum (ETH) $ 1,272.35
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 290.09
usd-coin
USD Coin (USDC) $ 1.00
binance-usd
Binance USD (BUSD) $ 1.00
xrp
XRP (XRP) $ 0.390599
dogecoin
Dogecoin (DOGE) $ 0.099128
cardano
Cardano (ADA) $ 0.319033
matic-network
Polygon (MATIC) $ 0.921594
polkadot
Polkadot (DOT) $ 5.56
staked-ether
Lido Staked Ether (STETH) $ 1,255.02
okb
OKB (OKB) $ 22.01
litecoin
Litecoin (LTC) $ 76.48
shiba-inu
Shiba Inu (SHIB) $ 0.000009
dai
Dai (DAI) $ 1.00
tron
TRON (TRX) $ 0.054006
solana
Solana (SOL) $ 13.55
uniswap
Uniswap (UNI) $ 6.26
avalanche-2
Avalanche (AVAX) $ 13.35
leo-token
LEO Token (LEO) $ 3.98
chainlink
Chainlink (LINK) $ 7.43
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 16,917.80
cosmos
Cosmos Hub (ATOM) $ 10.20
ethereum-classic
Ethereum Classic (ETC) $ 19.56
monero
Monero (XMR) $ 147.20
the-open-network
The Open Network (TON) $ 1.78
stellar
Stellar (XLM) $ 0.087436
bitcoin-cash
Bitcoin Cash (BCH) $ 110.66
quant-network
Quant (QNT) $ 130.26
algorand
Algorand (ALGO) $ 0.240340
crypto-com-chain
Cronos (CRO) $ 0.064624
filecoin
Filecoin (FIL) $ 4.53
apecoin
ApeCoin (APE) $ 4.00
near
NEAR Protocol (NEAR) $ 1.70
vechain
VeChain (VET) $ 0.019255
hedera-hashgraph
Hedera (HBAR) $ 0.048391
internet-computer
Internet Computer (ICP) $ 4.23
flow
Flow (FLOW) $ 1.10
terra-luna
Terra Luna Classic (LUNC) $ 0.000179
elrond-erd-2
MultiversX (Elrond) (EGLD) $ 43.27
frax
Frax (FRAX) $ 0.999589
eos
EOS (EOS) $ 0.933695
trust-wallet-token
Trust Wallet (TWT) $ 2.31
the-sandbox
The Sandbox (SAND) $ 0.593149
tezos
Tezos (XTZ) $ 1.02
aave
Aave (AAVE) $ 64.03
theta-token
Theta Network (THETA) $ 0.904102
chiliz
Chiliz (CHZ) $ 0.166706
huobi-token
Huobi (HT) $ 6.77