Bitcoin price is consolidating above the $42,500 support area. BTC could gain bullish momentum if it passes the $43,500 resistance zone.
- Bitcoin price is still struggling to break the resistance levels of $43,400 and $43,500.
- The price is trading above $42,500 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 $42,450.
- A break out of the $43,500 resistance area could lead to a significant upside for the currency pair.
Bitcoin Price Is Aiming Higher
Bitcoin price formed a base above the $41,800 level and began a steady rise. BTC was able to clear the $42,200 and $42,500 resistance levels.
We also brought back the 100-hour simple moving average. The price crossed the 50% Fib retracement level moving down from the $43,488 swing high to the $42,320 low. The bulls even pushed the price above the $43,000 level.
However, the bears appear to be active near the $43,200 level. This is close to the 76.4% Fib retracement level of the downward move from the $43,488 swing high to the $42,320 low.
Bitcoin is currently trading above $42,650 and the 100-hour simple moving average. Immediate resistance is near the $43,200 level. The next major resistance could be $43,500, above which the price could begin a significant rise. The next stop for the bulls could possibly be $44,200.
Source: TradingView.com BTCUSD
A clear break above the $44,200 resistance may lead the price to move towards the $45,000 resistance. The next resistance is now forming near the $45,500 level. Prices could rise even higher beyond the $45,500 level. The next major resistance level is $46,500.
Another drop in BTC?
If Bitcoin fails to rise above the $43,500 resistance zone, another decline could begin. Immediate support on the downside is near the $42,900 level and 100-hourly SMA.
The first major support is at $42,450 and is the channel trend line. The price could gain bearish momentum if it closes below $42,450. If stated, the price may plunge towards the $41,800 support level.
Technical indicators:
Hourly MACD – MACD is now losing speed in bullish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $42,900, then $42,450.
Key resistance levels – $43,200, $43,400 and $43,500.
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