Friday, December 9, 2022

TA: Bitcoin Recovers Losses But Here’s Why $41.5K Could Prevent Gains

Must Read

[ad_1]

Bitcoin extended decline below the $39,000 level against the US Dollar. BTC found support near the $38,550 zone and started a strong recovery wave.

  • Bitcoin extended decline below the $39,250 and $39,000 levels before it found support.
  • The price is now trading above $40,000 and the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $40,220 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must clear the $41,500 resistance zone to start a major upward move.

Bitcoin Price Still Faces Hurdles

Bitcoin price followed a bearish path below the $40,000 level. BTC even traded below the $39,200 support and declined to a new weekly low.

It spiked below $39,000 and traded as low as $38,570. Recently, it started a strong recovery wave and climbed above the $40,000 resistance zone. There was a break above a major bearish trend line with resistance near $40,220 on the hourly chart of the BTC/USD pair.

Bitcoin is now trading above $40,000 and the 100 hourly simple moving average. It even traded above the $41,000 level, but failed to clear the $41,500 resistance zone.

A high is formed near $41,334 and the price is now correcting gains. It is testing the 23.6% Fib retracement level of the recent increase from the $38,570 swing low to $41,334 high. An immediate resistance on the upside is near the $41,000 level.

Bitcoin Price

Source: BTCUSD on TradingView.com

The next key resistance could be $41,350. The main resistance is still near the $41,500 zone. To start a strong upward move, the price must clear the $41,500 zone. In the stated case, the price may perhaps rise towards the $42,500 resistance zone. Any more gains could set the pace for a move towards the $43,200 level.

Fresh Decline in BTC?

If bitcoin fails to clear the $41,500 resistance zone, it could start another decline. An immediate support on the downside is near the $40,250 level and the 100 hourly simple moving average.

The next major support is seen near the $39,950 level. It is near the 50% Fib retracement level of the recent increase from the $38,570 swing low to $41,334 high. A downside break below the $39,950 support zone could push the price towards the $39,000 level.

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 – $40,250, followed by $39,950.

Major Resistance Levels – $41,350, $41,500 and $42,500.

[ad_2]

Source link

Cryptoultimatum Crypto Trading Signal Service

LEAVE A REPLY

Please enter your comment!
Please enter your name here

I show You how To Make Huge Profits In A Short Time With Cryptos!
Trending
- Advertisement -

More Articles Like This