Bitcoin price is recovering above the $42,000 resistance level. For BTC to begin an increase towards the $45,000 resistance, it would need to clear $42,800 and $43,500.
- Bitcoin price is rising above the $42,000 resistance zone.
- The price is trading above $41,500 and the 100-hour simple moving average.
- The hourly chart of the BTC/USD pair (data feed from Kraken) shows a major bullish trendline forming with support near $41,500.
- Clearing the $42,800 and $43,500 resistance levels could start a steady rise for the pair.
Bitcoin Price Is Aiming Higher
Bitcoin price has formed a support base above the $40,000 support zone. BTC began a significant rally above the $41,200 and $41,500 resistance levels.
It opens the door to further profits above $42,000 and the 100-hour simple moving average. Finally, the price tested the $42,800 area. A high was made near $42,800 before a slight decline. The price fell below the $42,200 level.
Bitcoin tested the 23.6% Fib retracement level rising from the $38,518 swing low to the $42,800 high. On the hourly chart of the BTC/USD pair, there is also a major bullish trend line forming with support near $41,500.
The price is currently trading above $41,500 and the 100-hour simple moving average. Immediate resistance is near the $42,500 level. The next major resistance could be $42,800, above which the price could rise to test $43,500.
Source: TradingView.com BTCUSD
A clear break above the $43,500 resistance level could lead the price to move towards the $44,250 resistance level. The next resistance is currently forming near $45,000. Prices could go higher beyond the $45,000 level. The next major resistance level is $46,500.
Another drop in BTC?
If Bitcoin fails to rise above the $42,800 resistance zone, another decline could begin. Immediate support for the downside is near the $41,750 level.
The next major support level is $41,500, which is the trend line. The price could gain bearish momentum if it closes below $41,500. If indicated, the price may plunge towards the $40,650 support or the 50% Fib retracement level of the rise from the $38,518 low to the $42,800 high.
Technical indicators:
Hourly MACD – MACD is now picking up speed in bullish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $41,500, then $40,650.
Key resistance levels – $42,800, $43,500 and $45,000.
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