Bitcoin is showing positive signs above $39,500 against the US Dollar. BTC must clear $40,250 to continue higher in the near term.

• Bitcoin started another recovery wave and climbed above the $39,800 level.
• The price is now trading above $39,500 and the 100 hourly simple moving average.
• There is a major bullish trend line forming with support near $39,580 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair must clear the $40,250 resistance to continue higher in the near term.

Bitcoin Price Eyes Upside Break

Bitcoin price started a fresh recovery wave above the $38,500 resistance level. BTC cleared the $39,250 and $39,500 resistance levels to move into a positive zone.

There was a move above the 50% Fib retracement level of the main decline from the $40,774 swing high to $37,670 swing low. There is also a major bullish trend line forming with support near $39,580 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading above $39,500 and the 100 hourly simple moving average. It even spiked above the $40,000 resistance.

However, there was no close above the 76.4% Fib retracement level of the main decline from the $40,774 swing high to $37,670 swing low. On the upside, an immediate resistance is near the $40,000 level. The next key resistance could be near the $40,250 zone.

Source: BTCUSD on TradingView.com

A close above the $40,250 level could open the doors for a decent increase. In the stated case, the price could even surpass the $40,800 resistance. The next major resistance may perhaps be near the $41,250 zone.

Fresh Decline in…