Bitcoin Price Consolidates Above Support
The price of Bitcoin has entered a consolidation phase after finding support near the $41,500 zone. It has managed to recover above the $42,000 and $42,200 levels, even surpassing the 23.6% Fibonacci retracement level of the main decline. On the hourly chart of the BTC/USD pair, a rising channel with resistance near $44,000 is forming.
Bitcoin is currently trading above $42,500 and the 100 hourly Simple Moving Average. If the bulls continue to dominate, there is a possibility of a recovery above the $43,250 resistance level. The first major hurdle lies at $44,000 or the trend line of the channel.
A clear breakthrough above the $44,000 resistance could propel the price towards $44,450 and eventually to around $45,250. However, if Bitcoin fails to rise above this resistance zone, it may experience another decline.
Potential for Another Downward Movement
If Bitcoin fails to overcome the $44,000 resistance level, it could initiate a fresh decline. The immediate support on the downside is around $42,800 or the 100 hourly Simple Moving Average.
The next significant support level is at $42,120. A close below this level could trigger bearish momentum and push the price towards the $41,500 support in the near future.
Technical indicators show that the MACD is currently losing pace in the bearish zone. However, the RSI for BTC/USD is above the 50 level.
Major support levels are at $42,800 and $42,120 while major resistance levels are at $43,250, $44,000, and $44,450.
Hot Take: Bitcoin Price Consolidates as Bulls Face Resistance
The price of Bitcoin is currently consolidating above support levels after finding stability near $41,500. Although the bulls have managed to push the price above $42,000, they now face a critical resistance at $44,000.
If Bitcoin can overcome this hurdle, it may experience a decent recovery wave and move towards higher resistance levels. However, if it fails to break through, another decline could be in store.
Traders are closely monitoring the $44,000 level as a breakout or rejection could determine the short-term direction of Bitcoin’s price.
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