Bitcoin Struggles to Break Resistance Levels
The price of Bitcoin is currently facing difficulty in surpassing the $43,400 and $43,500 resistance levels. However, it is still trading above $42,500 and the 100 hourly Simple Moving Average. On the BTC/USD hourly chart, there is a rising channel forming with support at $42,450.
Bitcoin Price Shows Signs of Progress
After finding support above $41,800, Bitcoin has started to make steady progress. It has successfully cleared the $42,200 and $42,500 resistance levels and reclaimed the 100 hourly Simple Moving Average. The price has also climbed above the 50% Fib retracement level of the previous downward move.
Yet, there is resistance near the $43,200 level as bears become active. This level represents the 76.4% Fib retracement level of the recent downward move. Despite this, Bitcoin continues to trade above $42,650 and the 100 hourly SMA.
A Potential Rise Towards Key Resistance Levels
If Bitcoin manages to surpass the immediate resistance at $43,200 and the subsequent one at $43,500, it could initiate a substantial increase in price. The next target for bulls could be around $44,200. Breaking above this level may lead to further gains towards the $45,000 and $45,500 resistance levels.
A close above the $45,500 level could push Bitcoin’s price even higher towards a major resistance at $46,500.
Possible Decline if Resistance Isn’t Broken
If Bitcoin fails to overcome the resistance zone at $43,500, it may experience another decline. In this case, immediate support lies at the $42,900 level and the 100 hourly SMA. The first significant support is at $42,450 and the channel trend line.
A close below $42,450 could result in bearish momentum and a potential drop towards the $41,800 support level.
Technical Indicators
The MACD indicator shows that Bitcoin is losing pace in the bullish zone on the hourly chart. However, the Relative Strength Index (RSI) for BTC/USD remains above the 50 level.
Source: BTCUSD on TradingView.com
Hot Take: Bitcoin’s Struggle to Break Resistance Levels
Bitcoin’s current challenge in surpassing resistance levels highlights the importance of these levels in determining its price movement. While it has made progress by clearing certain barriers and reclaiming moving averages, it faces strong resistance near $43,200. This resistance zone must be overcome for Bitcoin to initiate a significant increase towards $44,200 and beyond. Failure to break this resistance may result in another decline with potential support levels at $42,900 and $42,450. Technical indicators suggest a mixed outlook with the MACD losing pace in the bullish zone but the RSI remaining above 50. Overall, Bitcoin’s ability to break through resistance will be crucial for its future trajectory.
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