Bitcoin price has formed a base above the $40,000 support zone. BTC is currently struggling to break the $43,000 resistance zone and consolidate.
- Bitcoin started a new increase from the $40,000 support base.
- The price is trading above $42,000 and the 100-hour simple moving average.
- On the hourly chart of the BTC/USD pair (data feed from Kraken), a breakout occurred above a bearish trend line connecting with resistance near $41,050.
- If there is a clear move above the $43,000 resistance, the pair may continue to rise.
Bitcoin price gains strength again
Bitcoin price remained above the $40,000 support zone. BTC formed a base and recently broke above the $41,000 resistance level to start a new rally.
On the hourly chart of the BTC/USD pair, a breakout occurred above a bearish trend line connecting with resistance near $41,050. The pair held strength above the 50% Fib retracement level of the major decline from the $44,699 swing high to the $39,999 low.
Finally, the price tested the $43,000 resistance area. Bitcoin surged above the 61.8% Fib retracement level of the key decline from the $44,699 swing high to the $39,999 low.
BTC is currently trading above $42,000 and the 100-hour simple moving average. Meanwhile, immediate resistance is close to the $43,200 level. The first major resistance is forming near $43,500. A break above the $43,500 resistance could begin a steady rise.
Source: TradingView.com BTCUSD
The next major resistance could be near $44,500, above which BTC could rise towards the $45,000 level. A clear break above the $45,000 level could set the $46,500 testing rate.
Another drop in BTC?
If Bitcoin fails to rise above the $43,200 resistance zone, another decline could begin. Immediate support for the downside is near the $42,500 level and the 100-hourly simple moving average.
The next major support is near $42,000, below which the price could test the $41,200 area. A drop below $41,200 risks further losses. If indicated, the price may decline towards the $40,000 support level in the near term.
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 – $42,500, then $42,000.
Key resistance levels – $43,200, $44,000 and $45,000.
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