Bitcoin has continued to fall below the $39,000 level against the US dollar, BTC found support near $38,550 and began a strong recovery wave.
On the hourly timeframe of the BTC/USD pair, there was a break above a major bearish trend line with resistance near $40,220.
Bitcoin is currently trading above $40,000 and above the 100 hourly simple moving average.
It is approaching the recent increase’s 23.6 percent Fib retracement level from the swing low of $38,570 to the high of $41,334.
To begin a strong upward move, the price must break through the $41,500 level.
If Bitcoin fails to break through the $41,500 resistance mark, it may begin a new downtrend.
It is close to the 50% Fib retracement level of the recent rise from the $38,570 swing low to the $41,334 high.