Bitcoin Initiates Strong Recovery
Bitcoin has experienced a significant increase in value after finding support at the $40,500 level. The price is currently trading above $42,000 and the 100 hourly Simple Moving Average.
Bullish Breakout
A major bearish trend line near $41,850 was broken on the BTC/USD hourly chart, indicating a bullish breakout. The pair surged above the $43,000 resistance zone.
However, Bitcoin is now facing resistance at the key level of $43,500. It reached a high of $43,464 and is currently consolidating its gains. The price remains above the 23.6% Fibonacci retracement level.
Resistance and Potential for Further Gains
The immediate resistance level is around $43,250, with the first major resistance forming at $43,500. A close above this level could trigger a steady increase in price.
The next significant resistance levels are at $44,200 and $45,000. If Bitcoin surpasses the $45,000 mark, it may test $46,500.
Possible Downward Movement
If Bitcoin fails to break through the $43,500 resistance zone, it could experience a fresh decline. The immediate support level on the downside is around $42,750.
If the price falls below $42,000 and breaks the 50% Fibonacci retracement level, there is a risk of further losses. In this scenario, Bitcoin may drop towards the $40,500 support level in the near future.
Technical Indicators
The MACD indicator shows bullish momentum gaining pace in the market. Additionally, the RSI indicator for BTC/USD is above the 20 level.
Conclusion: Bitcoin Faces Resistance at $43,500
Bitcoin has made a strong recovery, surpassing several key resistance levels. However, the $43,500 resistance zone poses a challenge for further gains. If Bitcoin fails to break through this level, a downward movement towards support levels at $42,750 and $42,000 is possible. On the other hand, a successful close above $43,500 could lead to a steady increase in price and potential tests of $44,200 and $45,000.
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