Bitcoin Price Consolidates Gains Above Resistance
The price of Bitcoin is currently consolidating its gains above the $42,500 resistance zone. It is trading above $42,750 and the 100 hourly Simple Moving Average (SMA). On the hourly chart of the BTC/USD pair, there is a key bullish trend line forming with support near $42,650.
Bitcoin Price Holds Ground
Bitcoin experienced a decent increase and managed to surpass the $42,000 resistance zone. It successfully cleared the $42,500 and $43,200 resistance levels. However, it encountered resistance near the $43,800 zone. Despite this, Bitcoin reached a new weekly high at around $43,779 before undergoing a short-term downside correction.
The price dropped below the $43,200 level and broke the 23.6% Fibonacci retracement level of the upward wave. Nevertheless, Bitcoin remains trading above $42,750 and the 100 hourly SMA. There is also a key bullish trend line on the chart with support near $42,650.
Potential for Further Upside Movement
The immediate resistance for Bitcoin is near the $43,250 level. If it manages to clear this level along with the $43,800 resistance, it could initiate a decent increase. The next target for bullish momentum may be around $44,500.
A clear move above the $44,500 resistance could push the price towards $45,000 and eventually to the next resistance forming near $45,200. Further upward movement could lead to a major resistance at $46,500.
Another Bearish Wave in BTC?
If Bitcoin fails to rise above the $43,800 resistance zone, there is a possibility of a downward movement. The immediate support on the downside is near $42,800, followed by the key support at $42,650 or the trend line.
The main support level is at $42,400 along with the 100 hourly SMA. If the price closes below $42,400, it could gain bearish momentum and potentially drop towards the $41,200 support level.
Technical Indicators
The MACD indicator on the hourly chart shows that Bitcoin is losing pace in the bullish zone. The RSI for BTC/USD is currently below the 50 level.
Disclaimer: The information provided here does not constitute investment advice or financial advice. The content presented in this article is solely for informational purposes.
Hot Take: Bitcoin Price Holds Steady Above Key Levels
Bitcoin’s price has managed to consolidate its gains above key resistance levels, indicating a positive trend. While facing resistance near the $43,800 zone, Bitcoin reached a new weekly high before undergoing a short-term correction.
However, as long as it remains above the $42,650 support level and maintains its position above the 100 hourly SMA, there is potential for further upside movement. Breaking through resistance levels at $43,250 and $43,800 could lead to a significant increase in price.
On the other hand, if Bitcoin fails to surpass the $43,800 resistance zone, it may experience another bearish wave. Immediate support lies at $42,800 and further down at $42,650. Traders should closely monitor these key levels to assess future market movements.
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