Bitcoin Attempts Breakout Above $42,500 Resistance
The price of Bitcoin is currently trying to surpass the resistance zone at $42,500. It is currently trading above $42,200 and the 100 hourly Simple Moving Average (SMA). On the hourly chart of the BTC/USD pair from Kraken, a bullish trend line is forming with support near $42,280.
Bitcoin Price Finds Support and Begins to Rise
After a decline and breaking the $42,200 support zone, Bitcoin formed a base above $41,200 and has started to rise again. The price reached a low point at $41,317 before starting its upward movement. It has surpassed the $42,000 resistance zone and climbed above the 50% Fib retracement level of the previous downward move.
Potential Resistance Levels for Bitcoin
The immediate resistance for Bitcoin is around the $42,800 level, which is near the 61.8% Fib retracement level. The first major resistance lies at $43,200. If Bitcoin manages to close above this level, it could experience further upward movement. The main hurdle sits at $43,800, and surpassing this resistance could lead to a decent move towards the $44,500 level. The next significant resistance is near $45,000 and potentially up to $46,200.
Concerns of Another Decline in BTC
If Bitcoin fails to break above the $43,200 resistance zone, it may experience another decline. Immediate support on the downside can be found near the $42,250 level and the bullish trend line. The next major support lies around $41,620. Should Bitcoin drop below this level, there is a risk of further losses with a potential drop towards the $40,500 support in the near future.
Technical Indicators
The hourly MACD is gaining momentum in the bullish zone, indicating positive price movement. The hourly RSI for BTC/USD is now above the 50 level, suggesting strength in the current uptrend.
Hot Take: Bitcoin Attempts to Break Resistance at $42,500
Bitcoin is currently making an effort to surpass the resistance zone at $42,500. With support from the 100 hourly SMA and a bullish trend line forming, there is potential for further upward movement. However, failure to break above the $43,200 resistance could result in another decline. It’s important to watch for immediate support levels at $42,250 and $41,620. Technical indicators show positive signs for Bitcoin’s price, but overcoming major resistance levels at $43,800 and beyond will be crucial for sustained bullish momentum.
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