Bitcoin price is attempting a new rise above the $42,200 level. BTC could surge if it breaks out of the $43,350 resistance area in the near term.
- Bitcoin started a new rally above the $42,000 support zone.
- The price is trading above $42,200 and the 100-hour simple moving average.
- The hourly chart of the BTC/USD pair (data feed from Kraken) shows a major bullish trend line forming with support near $42,400.
- If there is a clear move above the $43,350 resistance, the pair may continue to rise.
Bitcoin Price Is Aiming Higher
Bitcoin price began a significant rise above the $41,500 level. BTC was able to break through the $42,000 resistance zone and enter the positive zone. The rally could push the price above $43,000.
However, the price appears to be struggling around $43,350. The highest price was reached around $43,421 and the price is currently on an upward trend. There was a sharp downward correction below the $42,500 level. The price surged below the 50% Fib retracement level, rising from the $40,606 swing low to the $43,421 high.
However, bulls were active near $41,500. They protected the 61.8% Fib retracement level of the upward move from the $40,606 swing low to the $43,421 high.
Bitcoin is currently trading above $42,200 and the 100-hour simple moving average. Moreover, on the hourly chart of the BTC/USD pair, there is a major bullish trend line forming with support near $42,400. On the other hand, immediate resistance is close to the $43,300 level.
Source: TradingView.com BTCUSD
The first major resistance is forming near $43,350. A break above the $43,350 resistance could begin a steady rise. 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.
Another drop in BTC?
If Bitcoin fails to rise above the $43,350 resistance zone, another decline could begin. Immediate support for the downside is near the $42,400 level and trendline.
The next major support is near $42,000 and the 100-hour simple moving average, below which the price may test the $41,500 area. A drop below $41,500 risks further losses. If indicated, the price may fall towards the $40,600 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 – $42,400, then $42,000.
Key resistance levels – $43,350, $44,200 and $45,000.
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