Bitcoin Price Prediction: Can BTC Exhibit Short Term Recovery Above $39K?

Bitcoin is consolidating above the $39,250 support level in terms of the US Dollar. BTC may be able to recover if it can break through the $40,250 resistance level. Bitcoin retested the $39,250 support level and found many buyers. The price remains below $41,000 and the 100 hourly simple moving average.

On the hourly chart of the BTC/USD pair, a connecting bearish trend line is forming with resistance near $40,250. If the pair moves above $40,250, it could begin a short-term recovery.

Bitcoin Price is Stable

Bitcoin price attempted an upside correction above the $40,000 level, met with support. BTC has risen above the $40,400 mark, but the bears remain active. The price appears to have struggled to stay above the 23.6 percent Fib retracement level of the key decline from the $43,416 swing high to the $39,240 low. A high was formed near $40,800, and the price began to fall again. There was a break below $40,000, but the bulls defended the $39,250 zone.

It is now consolidating near $40,000, but it is still well below the 100 hourly simple moving average. On the upside, immediate resistance is near the $40,250 level. On the hourly chart of the BTC/USD pair, a connecting bearish trend line is forming with resistance near $40,250.

A clear break above the trend line could push the price up to $40,800. The next level of resistance could be around $41,250. It is close to the key decline’s 50% Fib retracement level from the swing high of $43,416 to the low of $39,240. If the bulls can break through the $41,250 and $41,350 resistance levels, the price could surge higher. The price may rise to the $41,800 resistance zone or the 100 hourly simple moving average in the scenario above.

Another Drop in BTC?

If Bitcoin fails to break through the $40,250 resistance level, it may continue to fall. On the downside, there is immediate support near $39,600.

The next significant support is seen near $39,250. A break below the $39,250 support level could hasten losses. In the scenario above, the price could fall to $38,500 or even $38,000. Good luck!