Bitcoin started a sharp recovery wave from $39,700 against the US Dollar. BTC is rising and the next major stop for the bulls might be $43,500.
Bitcoin spiked towards the $39,600 level, where the bulls took a stand.
The price is trading above $42,000 and the 100 hourly simple moving average.
There was a break above a key bearish trend line with resistance near $41,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might continue to recover and test the $43,500 resistance zone in the near term.
Bitcoin Price Recovers Sharply
Bitcoin price extended decline below the $40,500 support level. BTC even spiked below the $40,000 level and traded as low as $39,659.
Recently, there was a sharp recovery wave above the $40,000 level. The price climbed higher above the $40,500 and $41,200 resistance levels. The bulls even pushed the price above the 50% Fib retracement level of the recent decline from the $42,739 swing high to $39,659 low.
Besides, there was a break above a key bearish trend line with resistance near $41,800 on the hourly chart of the BTC/USD pair. Bitcoin is now trading above $42,000 and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
On the upside, the first major resistance is near the $42,750 level. The next major resistance is near the $43,500 level. It is near the 1.236 Fib extension level of the recent decline from the $42,739 swing high to $39,659 low. Any more gains could pump the price towards the $44,500 level. The next major resistance is near the $45,500 level, where the bears might emerge.
Fresh Decline in BTC?
If bitcoin fails to recover above $43,500, it could start a fresh decline. An immediate support on the downside is near the $41,800 zone and the 100 hourly SMA.
The first major support is near $41,500 and the broken trend line. A downside break below the trend line support could lead the price towards the $41,000 level. Any more losses might push the price towards the $40,000 support zone in the coming sessions.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $41,500, followed by $40,500.
Major Resistance Levels – $42,750, $43,000 and $43,500.
