Bitcoin is currently trading above $39,500 against the US dollar, BTC must break through $40,250 to continue rising in the near term. BITCOIN has begun another recovery wave and has risen above the $39,800 level. The price has risen above $39,500 and the 100 hourly simple moving average.

On the hourly chart of the BTC/USD pair, a major bullish trend line is forming with support near $39,580. The pair must break through the $40,250 resistance to continue higher in the short term.

Bitcoin Price Sees a Break to the Upside

Bitcoin has begun a new recovery wave above the $38,500 resistance level. To enter the positive zone, BTC broke through the $39,250 and $39,500 resistance levels.

There was a move above the 50 percent Fib retracement level of the main decline from the swing high of $40,774 to the swing low of $37,670. The price of bitcoin is now trading above $39,500 and the 100-hourly simple moving average. It even broke through the $40,000 barrier.

However, there was no close above the 76.4 percent Fib retracement level of the main decline from the swing high of $40,774 to the swing low of $37,670. On the upside, the $40,000 level is immediate resistance. The next significant resistance level could be around $40,250. A close above the $40,250 level could allow a significant increase. The price could even break through the $40,800 resistance level in the stated scenario. The next major resistance level could be around $41,250.

Is There a New BTC Drop?

If Bitcoin fails to break through the $40,250 resistance level, it may begin a new decline. On the downside, there is immediate support near $39,750.

The trend line and $39,580 are the next major supports. A clear break below the trend line support and $39,500 could signal the start of a new downtrend. In this case, the price could fall as low as $39,000. Any further losses may necessitate a test of the $38,400 support. Good luck!