Bitcoin Corrects Lower
Bitcoin has started a downside correction after facing resistance near the $44,300 level. The price is currently trading below $43,500 and the 100 hourly Simple Moving Average (SMA). On the hourly chart of the BTC/USD pair, there is a key declining channel forming with support around $42,850.
Potential for a Fresh Increase
The BTC/USD pair could initiate a fresh increase if it finds support near the $42,400 zone. However, it is currently testing the channel support. If the bulls manage to protect this support level, a new rally could be possible.
Resistance and Upside Targets
If Bitcoin breaks above the immediate resistance at $43,500, it could face further resistance at $44,000 and $44,300. A close above the $44,300 level might trigger a strong rally and open doors for a move towards $45,000. The next key resistance levels are seen at $46,500 and $47,200.
Possible Further Losses
If Bitcoin fails to surpass the $43,500 resistance zone, it may continue to decline. The first immediate support on the downside is near $42,800. A break below this level could lead to more losses with the next major support at $42,400. Further downward movement may push the price towards the $41,200 support in the short term.
Technical Indicators
The MACD indicator is showing increasing bearish momentum while the RSI is below the 50 level.
Hot Take: Bitcoin Faces Resistance at Critical Level
Bitcoin’s attempt to rise above the crucial resistance level of $43,500 was met with selling pressure, resulting in a downside correction. The cryptocurrency is currently trading below key support levels and faces the risk of further losses. However, if the bulls can defend the support level near $42,400, a potential rally towards $45,000 is possible. Traders should closely monitor the price action around these levels to gauge the short-term direction of Bitcoin.
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