Bitcoin (BTC) Price Analysis: Showing Signs of Recovery, What Are The Key Levels?
Bitcoin price dropped over 20% against the US Dollar yesterday. BTC is recovering at $ 30,000 and may attempt to rise above $ 40,000. According to the technical analysis of NewsBTC’s Aayush Jindal:
— Bitcoin dropped below the $ 40,000 and $ 35,000 support levels.
— The price is currently trading well below $ 42,000 and the 100 hourly simple moving average.
— There is a key bearish trend line with resistance around $ 39,000 on the hourly chart of the BTC / USD pair (based on Kraken data).
— If there is a break above $ 40,000, the pair is likely to start a strong bullish move.
Bitcoin (BTC) Price Begin To Recover
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Bitcoin failed to stay above the $ 42,000 and $ 42,000 support levels. BTC dropped over 20% and broke many key supports near $ 35,000. It also fell below the $ 32,000 support zone.
The price dropped as low as around $ 29,750 and is now rising. It broke the $ 35,000 resistance zone. There was a break above the 50% Fib retracement level of the last drop from $ 45,775 to $ 29,750.
However, the price is trading well below $ 42,000 and the 100 hourly simple moving average.
Also, there is a crucial bearish trend line with resistance around $ 39,000 on the hourly chart of the BTC / USD pair. The trendline is near the 61.8% Fib retracement level of the last drop from $ 45,775 to $ 29,750.
A successful break above the trendline resistance could set the pace for a strong move above the $ 40,000 resistance. The next major resistance is near the $ 42,000 level. A close above the $ 42,000 level could set the pace for a strong rise in the coming sessions. The next major resistance sits near the $ 46,000 level.
Will Bitcoin (BTC) Fall Again?
If Bitcoin fails to cross the $ 39,200 and $ 40,000 resistance levels, there is a risk of a new downside. Initial support on the downside is near the $ 36,000 level.
The first major support is currently occurring near the $ 34,000 zone. A downside break below the $ 34,000 support could initiate a new decline towards the main $ 30,000 support zone in the near term.
— Hourly MACD — The MACD is now gaining momentum in the bullish zone.
— Hourly RSI (Relative Strength Index) — The RSI for BTC / USD will likely surpass the 50 level.
— Major Support Levels — $ 36,000 followed by $ 34,000
— Major Resistance Levels — $ 39,000, $ 40,000 and $ 42,000