THE DAILY ENCRYPT

[date-today format='F j, Y']

TA: Bitcoin Holds Uptrend Support, What Could Trigger Sharp Decline

Photo by Batyrkhan Shalgimbekov

Bitcoin started a fresh increase above the $41,000 resistance against the US Dollar. BTC is struggling near $41,500, but it is still above the $40,000 support.

Bitcoin is trading well above the $40,000 support zone.
The price is trading above $39,800 and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $40,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a sharp decline if there is a clear move below the $39,000 support.

Bitcoin Price Remains Supported

Bitcoin price remained below the $41,500 resistance level. BTC formed a high near $41,470 and is currently moving lower. There was a decline below the $41,000 level.

The price also traded below the 23.6% Fib retracement level of the upward move from the $39,311 swing low to $41,470 high. However, the price is still trading well above $39,800 and the 100 hourly simple moving average.

It is trading near the 50% Fib retracement level of the upward move from the $39,311 swing low to $41,470 high. There is also a key bullish trend line forming with support near $40,050 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

On the upside, the price is facing resistance near the $41,000 level. The next major resistance could be near the recent high or $41,500. A successful break and close above the $41,500 level might start a steady increase. In the stated case, the price might rise towards the $42,000 level. Any more gains might send the price towards the $42,500 level in the near term.

Downside Break in BTC?

If bitcoin fails to clear the $41,500 resistance zone, it could continue to move down. An immediate support on the downside is near the $40,350 zone.

The next major support is seen near the $40,000 level and the trend line. The main support is still near the $39,000 zone and the 100 hourly simple moving average. A downside break below the $39,000 support zone could start a sharp decline. In this case, the price may perhaps decline towards the $37,500 level.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $40,000, followed by $39,000.

Major Resistance Levels – $41,000, $41,500 and $42,500.

admin

admin

admin

admin

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Latest News
PRESS RELEASES