Bitcoin begins recovery, why closing above 100 SMA matters

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The price of Bitcoin has started a further rise from the $ 37,500 support against the US dollar. BTC needs to clear the 100 hour SMA and $ 40,000 to enter a positive zone.

Bitcoin started a decent rise above the resistance levels of $ 38,000 and $ 38,500. Price is now struggling near the $ 40,000 area and the 100 hour simple moving average. There was a break above a major downtrend line with resistance near $ 38,250 on the hourly chart of the BTC / USD pair (Kraken data feed). The pair needs to move above the $ 40,000 barrier to continue climbing in the near term. The price of Bitcoin is increasing

The price of Bitcoin extended its decline below the support levels of $ 38,200 and $ 38,000. BTC tested the $ 37,500 area, where the bulls took a position.

A base was formed for nearly $ 37,500 before the price began to increase again. Earlier there had been a break above a major downtrend line with resistance near $ 38,250 on the hourly chart of the BTC / USD pair. The pair climbed well above the resistance levels of $ 38,000 and $ 38,500.

Bitcoin broke through the 23.6% Fib retracement level of the main decline from the high of $ 42,630 to $ 37,533. It is now struggling near the $ 40,000 zone and the 100 hour simple moving average.

Source: BTCUSD on TradingView.com

The 50% fiber retracement level of the main decline, from the high of $ 42,630 to the low of $ 37,533, is also near the $ 40,000 area. Therefore, a close above the 100 hour SMA and $ 40,000 could trigger a steady rise. The next major resistance is near the $ 41,500 level. Further gains could set the tone for a move towards the resistance zone of $ 42,500 in the near term.

New decline in BTC?

If bitcoin fails to break above the resistance levels of $ 40,000 and $ 40,200, it could initiate a further downward correction. Initial bearish support is near the $ 39,000 level.

First major support is now near the $ 38,750 area. A clear bearish breakout below the $ 38,750 support could cause a steep decline. In this case, the price could drop to the $ 38,000 level. The next major support is near the $ 37,500 area.

Technical indicators:

Hourly MACD The MACD is slowly losing steam in the bullish zone.

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

Major support levels $ 38,750, followed by $ 38,000.

Major resistance levels $ 40,000, $ 40,200 and $ 41,200.

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