Bitcoin Completes 61.8% Retracement – What’s Next?
BBitcoin Completes 61.8% Retracement, Bitcoin is recouping losses and trading above $39,000 per US dollar. BTC may gain bullish momentum if it breaks through the $40,000 resistance zone.
Bitcoin’s Price Has Begun to Fall
Before the price corrected higher, a low was formed near $37,159. Above the $38,000 and $38,500 resistance levels, there was a move. The price was able to break through the 76.4 percent Fib retracement level of the decline from the $39,545 swing high to the $37,159 low.
Furthermore, on the hourly chart of the BTC/USD pair, there was a break over a major bearish trend line with resistance near $38,980. Bitcoin is now trading above the $39,200 mark as well as the 100 hourly simple moving average.
On the uptrend, the next resistance is near the swing high of $39,545. The next major stumbling block is around the $40,000 mark. The price may accelerate higher if there is a clear move above the $40,000 resistance zone. In the aforementioned scenario, the price could rise to around $41,000.
The 1.618 Fib extension mark of the descending move from the $39,545 swing high to the $37,159 low is also close to $41,000. Any further gains could push the price up to $42,200.
Bitcoin Completes 61.8% Retracement, Another BTC Rejection?
If Bitcoin fails to break through the $40,000 resistance level, it may begin a new decline. On the downside, there is immediate support near $39,150.
The 100 hourly simple moving average and the $38,800 level are the next major supports. If the price breaks below the $38,800 support, it may gain bearish momentum. In the aforementioned scenario, there is a risk of a move towards the $37,500 level.