Bitcoin price is recovering higher above the USD 42,000 resistance. BTC needs to clear USD 42,800 and USD 43,500 to start an increase towards the USD 45,000 resistance.
- Bitcoin price is moving higher above the USD 42,000 resistance zone.
- The price is trading above USD 41,500 and the 100 hourly Simple Moving Average.
- A major bullish trendline is forming with support near $41,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a steady rise if it overcomes the USD 42,800 and USD 43,500 resistance levels.
Bitcoin price aims higher
Bitcoin price formed a support base above the $40,000 support zone. BTC started a decent rise above the USD 41,200 and USD 41,500 resistance levels.
It opened the doors to more gains above $42,000 and the 100 hourly Simple Moving Average. Finally, the price tested the $42,800 zone. A high formed around $42,800 before a small decline occurred. The price fell below the $42,200 level.
Bitcoin tested the 23.6% Fib retracement level of the upward move from the $38,518 swing low to the $42,800 high. A major bullish trendline is also forming with support near $41,500 on the hourly chart of the BTC/USD pair.
The price is now trading above USD 41,500 and the 100 hourly Simple Moving Average. The immediate resistance is near the $42,500 level. The next major resistance could be at USD 42,800, above which the price could rise and test USD 43,500.
Source: BTCUSD on TradingView.com
A clear move above the USD 43,500 resistance could send the price towards the USD 44,250 resistance. The next resistance is now forming around the $45,000 level. A close above the USD 45,000 level could push the price further higher. The next major resistance is at $46,500.
Another drop in BTC?
If Bitcoin fails to rise above the USD 42,800 resistance zone, it could trigger another decline. The immediate downside support is near the $41,750 level.
The next major support is $41,500 and the trendline. If there is a close below $41,500, the price may gain bearish momentum. In the mentioned case, the price could dive towards the $40,650 support or the 50% Fib retracement level of the upward move from the $38,518 swing low to the $42,800 high in the short term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – USD 41,500, followed by USD 40,650.
Major resistance levels – $42,800, $43,500 and $45,000.
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