Bitcoin Correcting Gains from Resistance Zone
The price of Bitcoin is currently correcting gains from the $43,500 resistance zone. However, it is still trading above $42,000 and the 100 hourly Simple Moving Average (SMA).
Connecting Bearish Trend Line
An hourly chart of the BTC/USD pair from Kraken shows that there is a connecting bearish trend line forming with resistance near $42,600. This indicates that the pair may continue to move down if there is a break below the $41,650 support level.
Bitcoin Price Drops Again
After gaining pace and surpassing the $42,000 resistance zone, Bitcoin faced rejection near $43,500. The price failed to clear this zone and started a fresh decline.
Bitcoin found support near the $41,800 level and is currently trading above $42,000 and the 100 hourly SMA. It is also stable above the 61.8% Fib retracement level.
Resistance Levels and Potential Increase
The immediate resistance for Bitcoin is near $42,600 where a bearish trend line is forming. The first major resistance is at $43,000, followed by the main resistance at $43,500.
If Bitcoin manages to close above the $43,500 resistance level, it could start a steady increase towards the next key resistance at $44,500 and potentially rise to the $45,000 level.
More Losses in BTC?
If Bitcoin fails to rise above the $42,650 resistance zone, there is a possibility of further downward movement. The immediate support on the downside is at $42,000.
The next major support level is near $41,650. If the price breaks below this support, it could lead to more losses with a potential drop towards the $40,500 support level in the near term.
Technical Indicators
The hourly MACD is currently in the bearish zone and gaining pace. The RSI for BTC/USD is near the 50 level.
Source: BTCUSD on TradingView.com
Hot Take: Bitcoin Faces Resistance and Potential Downward Movement
The price of Bitcoin faced rejection near the $43,500 resistance zone and is currently correcting its gains. While it is still trading above key support levels, there is a possibility of further downward movement if it fails to rise above the resistance levels. Traders should keep an eye on the $42,650 resistance and $41,650 support levels as they will determine the next direction for Bitcoin. Technical indicators suggest a bearish trend, but a close above the $43,500 resistance could indicate a potential increase. Overall, Bitcoin’s price movement in the coming days will be crucial in determining its short-term trajectory.
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