Bitcoin

Resistance

Bitcoin price started an upside correction from the $38,500 support zone. BTC could gain bullish momentum if it clears the $40,500 resistance zone. 
<ul> 
 <li>Bitcoin price is attempting a recovery wave from the $38,500 support zone.</li> 
 <li>The price is trading below $40,000 and the 100 hourly Simple moving average.</li> 
 <li>There is a major bearish trend line forming with resistance near $40,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).</li> 
 <li>The pair might struggle to recover above the $40,400 and $40,500 resistance levels.</li> 
</ul> 
<h2 id="bitcoin-price-attempts-recovery">Bitcoin Price Attempts Recovery</h2> 
Bitcoin price extended its decline below the $40,000 support zone. BTC even spiked below the $49,200 level and tested the $38,500 support zone. A new weekly low was formed near $38,518 and the price started an <a href="https://www.newsbtc.com/analysis/btc/bitcoin-price-faces-crucial-test-38500/" target="_blank" rel="noopener ">upside correction</a>. 
There was a recovery wave above the $39,200 and $39,500 levels. However, Bitcoin is now trading below $40,000 and the <a href="https://www.newsbtc.com/analysis/btc/bitcoin-price-dives-below-40k/" target="_blank" rel="noopener ">100 hourly Simple moving average</a>. 
Immediate resistance is near the $40,400 level. There is also a major bearish trend line forming with resistance near $40,400 on the hourly chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the downward wave from the $42,260 swing high to the $38,518 low. 
The next key resistance could be $40,500, above which the price could rise and test $40,850. It is close to the 61.8% Fib retracement level of the downward wave from the $42,260 swing high to the $38,518 low. 
<a href="https://www.newsbtc.com/wp-content/uploads/2024/01/Bitcoin_2ecc06.png?resize=1024%2C461"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-571360" src="https://www.newsbtc.com/wp-content/uploads/2024/01/Bitcoin_2ecc06.png?resize=1024%2C461" alt="Bitcoin Price" width="1024" height="461" srcset="https://www.newsbtc.com/wp-content/uploads/2024/01/Bitcoin_2ecc06.png?resize=1024%2C461?w=1835 1835w, https://www.newsbtc.com/wp-content/uploads/2024/01/Bitcoin_2ecc06.png?resize=1024%2C461?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/01/Bitcoin_2ecc06.png?resize=1024%2C461?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/01/Bitcoin_2ecc06.png?resize=1024%2C461?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/01/Bitcoin_2ecc06.png?resize=1024%2C461?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/01/Bitcoin_2ecc06.png?resize=1024%2C461?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/01/Bitcoin_2ecc06.png?resize=1024%2C461?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"></a> 
Source: <a href="https://www.tradingview.com/symbols/BTCUSD/" target="_blank" rel="noopener nofollow">BTCUSD on TradingView.com</a> 
A clear move above the $40,850 resistance could send the price toward the $41,500 resistance. The next resistance is now forming near the $42,000 level. A close above the $42,000 level could push the price further higher. The next major resistance sits at $42,500. 
<h2 id="another-drop-in-btc">Another Drop In BTC?</h2> 
If Bitcoin fails to rise above the $40,400 resistance zone, it could start another decline. Immediate support on the downside is near the $39,400 level. 
The next major support is $38,500. If there is a close below $38,500, the price could gain bearish momentum. In the stated case, the price could visit the $37,000 support in the near term. 
Technical indicators: 
Hourly MACD – The MACD is now losing pace in the bearish zone. 
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level. 
Major Support Levels – $39,400, followed by $38,500. 
Major Resistance Levels – $40,400, $40,500, and $40,850.

Bitcoin Price At Make-Or-Break Moment, Key Levels To Watch

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