Bitcoin price failed to extend gains above the USD 44,300 resistance. BTC is now moving lower and could find bids near the USD 42,400 support zone.
- Bitcoin started a downward correction from the USD 44,300 resistance zone.
- The price is trading below $43,500 and the 100 hourly Simple Moving Average.
- A major descending channel is forming with support near $42,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a new rise from the $42,400 support zone.
Bitcoin price spikes again
Bitcoin price attempted to rise above the USD 43,500 resistance zone again. BTC climbed above the USD 44,000 level, but the bears were active near the USD 44,300 zone.
A high was formed around $44,300 and the price started falling again. The price fell below the USD 44,000 and USD 43,500 levels. There was a move below the 23.6% Fib retracement level of the upward move from the $40,515 swing low to the $44,300 high.
Bitcoin is now trading below $43,500 and the 100 hourly Simple Moving Average. A major descending channel is also forming with support near $42,850 on the hourly chart of the BTC/USD pair.
The pair is now testing channel support, below which it could accelerate towards $42,400 or the 50% Fib retracement level of the upward move from the $40,515 swing low to the $44,300 high. If the bulls protect the channel support, another surge could occur.
On the upside, immediate resistance is around the $43,500 level. The first major resistance forms around $44,000 and $44,300. A close above the USD 44,300 resistance could trigger a strong rally and the price could even clear the USD 45,000 resistance.
Source: BTCUSD on TradingView.com
The next major resistance could be near USD 46,500, above which BTC could rise towards the USD 47,200 level. Any further gains could send the price to $48,000.
Lose more in BTC?
If Bitcoin fails to rise above the $43,500 resistance zone, it could continue to decline. The immediate downside support is near the USD 42,800 level.
The next major support is near $42,400. If there is a move below $42,400, there is a risk of more losses. 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 bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 42,400, followed by USD 41,200.
Major resistance levels – $43,500, $44,300 and $45,000.
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