- Bitcoin price extended decline below the $40,000 zone against the US Dollar.
- The price is now trading above $40,000 and the 55 simple moving average (4-hours).
- There was a break above a major bearish trend line with resistance near $41,000 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair could start a steady increase if there is a move above the $42,000 level.
Bitcoin price is recovering above $40,000 against the US Dollar. BTC could recover further if it breaks the $42,000 and $43,000 resistance levels.
Bitcoin Price Analysis
Bitcoin price failed to clear the $43,000 resistance zone. As a result, BTC started a fresh decline and traded below the key $41,500 support zone.
There was a clear move below the $40,000 level and the 55 simple moving average (4-hours). The price even spiked below the $39,000 level. A low is formed near $38,550 and the price is now correcting losses. There was a move above the $40,000 resistance zone and the 55 simple moving average (4-hours).
There was a break above a major bearish trend line with resistance near $41,000 on the 4-hours chart of the BTC/USD pair. The pair surpassed the 23.6% Fib retracement level of the downward move from the $47,470 swing high to $38,550 low.
An immediate resistance on the upside is near the $42,000 level. The next major resistance on the upside is near the $43,000 level. It is near the 50% Fib retracement level of the downward move from the $47,470 swing high to $38,550 low.
To start another increase, the price must settle above the $43,000 level in the near term. If there is no upside break, the price might start a fresh decline below $40,500. The next key support is near the $40,000 level. Any more losses might call for a test of the key $38,500 support zone, where the bulls might take a stand.
Looking at the chart, bitcoin price is clearly trading above $40,000 and the 55 simple moving average (4-hours). Overall, the price could start a steady increase if there is a move above the $42,000 level.
Technical Indicators
4 hours MACD – The MACD is now losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI is now above the 50 level.
Key Support Levels – $40,500 and $40,000.
Key Resistance Levels – $42,000, $43,000 and $44,200.