Bitcoin price is still struggling below the $43,500 resistance zone. A clear move above the $44,000 resistance area could allow BTC to begin a recovery.
- Bitcoin price began a consolidation phase in the $41,500 area.
- 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 rising channel forming with resistance near $44,000.
- A rise above the $44,000 resistance zone could lead to a significant recovery for the currency pair.
Bitcoin Price Faces Hurdles
Bitcoin price found support near $41,500 and recently began a consolidation phase. BTC was able to recover a few points from the $42,000 and $42,200 levels.
Prices surged above the 23.6% Fib retracement level of the major decline from the $49,000 swing high to the $41,475 low. On the hourly chart of the BTC/USD pair, there is also a major upward channel forming with resistance near $44,000.
Bitcoin is currently trading above $42,500 and the 100-hour simple moving average. If the strength continues, the price may recover above the $43,250 resistance. The first major resistance is $44,000 or the channel trendline.
Source: TradingView.com BTCUSD
A clear break above the $44,000 resistance may lead the price to move towards the $44,450 resistance. The next resistance is now forming near the $45,250 level. This is close to the 50% Fib retracement level of the major decline from the $49,000 swing high to the $41,475 low. Prices could rise further above the $45,250 level. The next major resistance level is $47,000.
Another drop in BTC?
If Bitcoin fails to rise above the $44,000 resistance zone, it could begin a new downtrend. Immediate support for the downside lies near the $42,800 level or the 100-hour simple moving average.
The next major support is at $42,120. The price could gain bearish momentum if it closes below $42,120. If indicated, the price may fall towards the $41,500 support level in the near term.
Technical indicators:
Hourly MACD – MACD is now losing speed in bearish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now above the 50 level.
Key support levels – $42,800, then $42,120.
Key resistance levels – $43,250, $44,000 and $44,450.
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