Bitcoin (BTC) Overpowers Obstacles; Why It Might Regain Strength

  • Bitcoin stretched its downward move but steadied beyond the barrier of $38K.
  • For now, the bellwether crypto traded beyond $40K and 100-hr SMA.
  • Kraken data shows a break past a crucial trend-line with $39,550 resistance on BTC/USD 1hr chart.
  • Bitcoin targets further highs past the resistance at $40.5K and $40,950.

Bitcoin experienced extended drops and touched the $38.2K mark. However, the crypto kick-started a colossal recovery wave, surging past the resistance at $40K.

Bitcoin Sees a Swift Recovery

Bitcoin stayed inside a bearish territory following the decline under $39.2K support. The leading cryptocurrency extended the plunge beneath the $38.5K mark, but bulls tightened their position around $38.2K.

Bitcoin started a massive surge after forming a low near $38.2K. The bellwether crypto surged past the resistance zones at $39.2K and $39.5K. It moved past the 23.6% Fibonacci retracement zone of the drop to $38.2K from $42,950.

Furthermore, the one-hour chart shows a break past a crucial bearish line with the $39,550 resistance. For now, the world’s dominant crypto trades beyond $40K ad 100-hr Simple Moving Average. The crypto keeps the nearest resistance of $40,550 away as it changes hands around $40,611 at this publication.

The hurdle of $40,550 stays near the 50% Fibonacci retracement of the $42,950 – $38.2K move. BTC’s next resistance stands at $40,950. A clear move past $40,950 and $41K may lead to continued surges by the token.

In such a scenario, Bitcoin might overcome the resistance zone at $41.2K. Another massive obstacle could appear at $41.8K.

Downswings Supported in Bitcoin?

Bitcoin may see downward movements if it fails to overpower the resistance at $41K. That will see BTC at the immediate support floor at $40K. Another foothold for Bitcoin stands at $39.8K and 100-hr Simple Moving Average. A closing under this barrier may welcome another downward wave. That can see BTC plunging towards the $39K level.

For now, the overall crypto space displays recovery attempts. The global cryptocurrency market cap surged 5.69% over the past day, changing hands near $1.87 trillion at this publication. Keeping the upside move would see Bitcoin regaining momentum.

By Edward Richardson
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