By Shelly Melancon (Switzerland)
The leading digital asset, Bitcoin, is currently consolidating above the support zone of $39,250 against the USD. Bitcoin has the possibility of recovering if it can manage to break into the $40,250 resistance region.
Bitcoin has since retested the $39,250 support level, where a strong buying presence was found amid the ongoing market instability that has been present for some time now.
However, the price of BTC is currently trading under $41,000 and is some distance away from the 100-hour simple moving average set at the beginning of the trading session.
A bearish trend line has begun forming with some resistance near the $40,250 price level in the hourly trading period.
Support for the Bitcoin Price
The price of Bitcoin has attempted to cross over the $40,000 value level. BTC succeeded in climbing above the $40,400 price level where the bears are currently active and waiting for any misstep to make their presence fully known.
The price is still struggling to stay afloat above the Fibonacci retracement level set at 23.6%, and this indicates a significant decline from the swing high of $43,416 to the low of $39,240.
However, a high was formed near the $40,800 price level, which culminated in another price decline. There was a breakout below $40,000 where the bulls fought to keep the price at the $39,250 level.
Also read:The price is currently consolidating but has not yet reached the 100-hour moving average as expected. Any immediate resistance on the upside will be near the $40,250 zone. A connecting bearish trend line is already forming with some resistance.
A further move above the trend line would see the price move towards $40,800, putting the next likely resistance at $41,250. The support is near the Fibonacci retracement level, which is expected to complement the price action.
Should the bulls make mincemeat of the $41,250 and $41,350 resistance zones, the price will accelerate further higher than it was previously. In this case, the rise may move towards the $41,800 resistance level.
Is Another Decline Imminent?
If the BTC is unable to clear the $40,250 resistance level, the price of Bitcoin will continue to spiral downward until an attempt is made to move past the resistance zone. Any immediate support for the downtrend will be near $39,600.
Moreover, the next significant support is found near the $39,250 price level. But a downtrend break below the support level could trigger another round of losses, seeing the price move near the $38,500 price level.
The price performance of Bitcoin is dependent to a large extent on the outcomes of the variables that are part of the trading activities of the token and where a below-optimal performance will further worsen the market situation. As a result of this, further positive price performance is needed to recover the already fluctuating value of the token.
The leading cryptocurrency needs a solid rebound to pull itself from the current slump hovering over it.
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