Bitcoin price is consolidating above the $42,250 support area. If BTC clears the $43,000 and $43,400 resistance levels, it could begin a significant increase.
- Bitcoin price again failed to break the $43,400 resistance level and corrected to the downside.
- The price is trading below $43,000 and the 100-hour simple moving average.
- The hourly chart of the BTC/USD pair (data feed from Kraken) shows a major upward channel forming with support at $42,400.
- If there is a clear move below the $42,250 support, the pair may continue to decline.
Bitcoin price maintains support
Bitcoin price made another attempt to clear the $43,400 and $43,500 resistance levels. However, BTC has struggled to extend its gains and recently began another downtrend below $43,000.
There was a move below the $42,800 support level. A low was formed near $42,320 and the price is currently consolidating losses. On the hourly chart of the BTC/USD pair, there is also a major upward channel forming with support at $42,400.
Bitcoin is currently trading below $43,000 and the 100-hour simple moving average. Immediate resistance is near the $42,900 level. The $43,489 swing high to $42,320 low is close to the 50% Fib retracement level of the bearish wave.
The next major resistance could be $43,200 and the 76.4% Fib retracement level of the bearish wave from $43,489 to the lows of $42,320, above which the price could begin a significant rise.
Source: TradingView.com BTCUSD
The next stop for the bulls could possibly be $43,500. A clear break above the $43,500 resistance may lead the price to move towards the $44,000 resistance. The next resistance is now forming near the $44,200 level. Prices could rise further above the $44,200 level. The next major resistance level is $45,000.
What are the downsides of BTC?
If Bitcoin fails to rise above the $43,000 resistance zone, another decline could begin. Immediate support for the downside is near the $42,320 level.
The first major support is at $42,250. The price could gain bearish momentum if it closes below $42,250. If stated, the price may plunge towards the $41,200 support level.
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 – $42,320, then $42,250.
Key resistance levels – $43,000, $43,250 and $43,500.
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