Bitcoin price started a strong rise above the $42,000 zone. BTC is now consolidating gains and could rally further towards the $45,000 zone.
- Bitcoin gained speed above the USD 42,200 and USD 43,200 levels.
- The price is trading above USD 43,000 and the 100 hourly Simple Moving Average.
- Two bullish trendlines are forming with support near $43,900 and $42,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely gearing up for another surge above the $44,000 level.
Bitcoin price remains supported
Bitcoin price started a major rise above the USD 42,000 resistance zone. BTC rose and even broke the USD 43,200 resistance zone. A new multi-month high was formed near $44,465 before the price started a small downward correction.
There was a move below the USD 44,000 level. The price tested the 23.6% Fib retracement level of the upward move from the $39,475 swing low to the $44,465 high. However, the bulls remained active above the USD 43,200 support zone.
Bitcoin is also trading above $43,500 and the 100 hourly Simple Moving Average. Furthermore, two bullish trendlines are forming with support around $43,900 and $42,000 on the hourly chart of the BTC/USD pair. The second trendline is close to the 61.8% Fib retracement level of the upward move from the $39,475 swing low to the $44,465 high.
On the upside, immediate resistance is around the $44,250 level. The first major resistance forms around $44,450, above which the price could rise towards the $45,000 level.
Source: BTCUSD on TradingView.com
A close above the $45,000 resistance could send the price higher. The next major resistance could be near USD 46,200, above which BTC could rise towards the USD 47,500 level.
Short-term declines in BTC?
If Bitcoin fails to rise above the USD 44,250 resistance zone, a downward correction could occur. The immediate downside support is near the $43,900 level and the trendline.
The next major support is near USD 42,550, below which the price could test the second trendline. If there is a move below $42,000, there is a risk of more downside. In the mentioned case, the price could fall towards the support at USD 41,200 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 43,900, followed by USD 42,000.
Major resistance levels – $44,250, $44,450 and $45,000.
