Bitcoin price jumped from the $40,500 support zone. BTC is up more than 5%, but bears are still defending the $43,500 resistance zone.
- Bitcoin started a strong rise from the $40,500 support zone.
- 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 major bearish trendline with resistance near $41,850.
- Failure to break the $43,500 resistance zone could lead the pair to fall again.
Bitcoin price revisits $43,500
Bitcoin price extended its decline below the $41,200 support level. However, BTC maintained a good bid above the $40,500 support area. A low was formed near $40,515 and the price began a new rise.
There was a steady increase above the $41,200 and $42,000 levels. On the hourly chart of the BTC/USD pair, a breakout occurred above the main bearish trend line with resistance near $41,850. The pair rebounded above the $43,000 resistance zone.
Bitcoin is currently struggling to clear the key resistance area of $43,500. A high was made near $43,464 and the price is now consolidating gains. Above the 23.6% Fib retracement level from the $40,515 swing low to the $43,464 high.
This is well above $42,000 and the 100-hour simple moving average. On the other hand, immediate resistance is near the $43,250 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 $44,200, 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.
Will there be more losses in BTC?
If Bitcoin fails to rise above the $43,500 resistance zone, it could begin a new downtrend. Immediate support for the downside is near the $42,750 level.
The next major support is near $42,000 or the 50% Fib retracement level rising from the $40,515 swing low to the $43,464 high. Any move below $42,000 risks further losses. If indicated, the price may decline towards the $40,500 support level in the near term.
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 20 level.
Key support levels – $42,750, then $42,000.
Key resistance levels – $43,200, $43,500 and $45,000.
Disclaimer: This article is provided for educational purposes only. This does not represent NewsBTC’s opinion on whether to buy, sell or hold any investment, and of course investing carries risks. We recommend that you do your own research before making any investment decisions. Your use of the information provided on this website is entirely at your own risk.