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

Apr 18, 2022

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

Originally posted here.
By: Aayush Jindal

Overview

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. 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.

The Post

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.

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.

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