Bitcoin Starts Recovery, Why Close above 100 SMA Is Important

Bitcoin price started a fresh increase from the $37,500 support against the US Dollar. BTC must clear the 100 hourly SMA and $40,000 to move into a positive zone.

Bitcoin started a decent increase above the $38,000 and $38,500 resistance levels.
The price is now struggling near the $40,000 zone and the 100 hourly simple moving average.
There was a break above a major bearish trend line with resistance near $38,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair must settle above the $40,000 barrier to continue higher in the near term.

Bitcoin Price is Rising
Bitcoin price extended its decline below the $38,200 and $38,000 support levels. BTC tested the $37,500 zone, where the bulls took a stand.
A base was formed near $37,500 before the price started a fresh increase. Earlier, there was a break above a major bearish trend line with resistance near $38,250 on the hourly chart of the BTC/USD pair. The pair climbed higher nicely above the $38,000 and $38,500 resistance levels.
Bitcoin broke the 23.6% Fib retracement level of the main decline from the $42,630 swing high to $37,533 low. It is now struggling near the $40,000 zone and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com
The 50% Fib retracement level of the main decline from the $42,630 swing high to $37,533 low is also near the $40,000 zone. Therefore, a close above the 100 hourly SMA and $40,000 might trigger a steady increase. The next major resistance is near the $41,500 level. Any more gains could set the pace for a move towards the $42,500 resistance zone in the near term.
Fresh Decline in BTC?
If bitcoin fails to climb above the $40,000 and $40,200 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $39,000 level.
The first major support is now near the $38,750 zone. A clear downside break below the $38,750 support might call for a sharp decline. In the stated case, the price might decline towards the $38,000 level. The next major support is near the $37,500 zone.
Technical indicators:
Hourly MACD – The MACD is slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Levels – $38,750, followed by $38,000.
Major Resistance Levels – $40,000, $40,200 and $41,200.

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 27,002.23
ethereum
Ethereum (ETH) $ 1,873.42
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 305.54
usd-coin
USD Coin (USDC) $ 0.999853
xrp
XRP (XRP) $ 0.508891
staked-ether
Lido Staked Ether (STETH) $ 1,872.49
cardano
Cardano (ADA) $ 0.366944
dogecoin
Dogecoin (DOGE) $ 0.072045
matic-network
Polygon (MATIC) $ 0.896232
solana
Solana (SOL) $ 20.79
litecoin
Litecoin (LTC) $ 95.39
tron
TRON (TRX) $ 0.075321
polkadot
Polkadot (DOT) $ 5.25
binance-usd
Binance USD (BUSD) $ 1.00
shiba-inu
Shiba Inu (SHIB) $ 0.000009
avalanche-2
Avalanche (AVAX) $ 14.24
dai
Dai (DAI) $ 0.999585
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 27,039.24
uniswap
Uniswap (UNI) $ 5.03
leo-token
LEO Token (LEO) $ 3.58
chainlink
Chainlink (LINK) $ 6.40
cosmos
Cosmos Hub (ATOM) $ 10.40
okb
OKB (OKB) $ 46.03
monero
Monero (XMR) $ 148.44
the-open-network
Toncoin (TON) $ 1.79
ethereum-classic
Ethereum Classic (ETC) $ 17.90
stellar
Stellar (XLM) $ 0.091702
bitcoin-cash
Bitcoin Cash (BCH) $ 113.28
internet-computer
Internet Computer (ICP) $ 4.72
true-usd
TrueUSD (TUSD) $ 1.00
filecoin
Filecoin (FIL) $ 4.74
lido-dao
Lido DAO (LDO) $ 2.09
aptos
Aptos (APT) $ 8.57
quant-network
Quant (QNT) $ 115.68
hedera-hashgraph
Hedera (HBAR) $ 0.051367
crypto-com-chain
Cronos (CRO) $ 0.059110
arbitrum
Arbitrum (ARB) $ 1.16
vechain
VeChain (VET) $ 0.020033
near
NEAR Protocol (NEAR) $ 1.57
the-graph
The Graph (GRT) $ 0.131448
apecoin
ApeCoin (APE) $ 3.11
algorand
Algorand (ALGO) $ 0.148587
the-sandbox
The Sandbox (SAND) $ 0.566175
paxos-standard
Pax Dollar (USDP) $ 1.00
frax
Frax (FRAX) $ 0.998770
edgecoin-2
Edgecoin (EDGT) $ 1.00
eos
EOS (EOS) $ 0.891342
rocket-pool
Rocket Pool (RPL) $ 48.85
elrond-erd-2
MultiversX (EGLD) $ 36.99