Bitcoin Holds Support and Shows Signs of Recovery
The price of Bitcoin has managed to recover above the $43,500 resistance level, indicating a positive trend. However, it is currently trading below $44,000 and the 100 hourly Simple Moving Average. On the hourly chart of the BTC/USD pair, there is a key bearish trend line forming with resistance near $44,400.
Bitcoin Price Sees Upside Resistance
Bitcoin experienced a decent upward movement after breaking the $43,200 resistance zone. Despite this, it faced rejection near the $44,500 resistance level. The price is now correcting its gains and has dropped below $44,000 and the 100 hourly Simple Moving Average. The immediate resistance is around $44,000, followed by a major resistance at $44,400.
Possible Decline in Bitcoin’s Price
If Bitcoin fails to rise above the $44,400 resistance level, it could potentially start a fresh decline. The first support on the downside is near $42,800, followed by a major support at $42,150. A further drop below $41,150 could lead to bearish momentum and push the price towards the $40,500 support level in the near future.
Technical Indicators
The hourly MACD (Moving Average Convergence Divergence) is currently losing pace in the bullish zone. The RSI (Relative Strength Index) for BTC/USD is also below the 50 level.
Hot Take: Bitcoin Struggles to Sustain Recovery Momentum
Despite briefly recovering above key resistance levels, Bitcoin’s price faces challenges in maintaining its upward momentum. The rejection near the $44,500 level suggests that further gains may be limited. If the price fails to break above the $44,400 resistance, a decline towards support levels at $42,800 and $42,150 is possible. Technical indicators show signs of weakening bullish momentum. Bitcoin’s ability to sustain its recovery will be crucial in determining its short-term direction.
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