Bitcoin price is consolidating above the USD 42,500 support zone. BTC could gain bullish momentum if it breaks the USD 43,500 resistance zone.
- Bitcoin price is still struggling to break the USD 43,400 and USD 43,500 resistance levels.
- The price is trading above USD 42,500 and the 100 hourly Simple Moving Average.
- A major ascending channel is forming with support at $42,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a strong rise if it breaks the $43,500 resistance zone.
Bitcoin price aims higher
Bitcoin price formed a base above the USD 41,800 level and started a steady rise. BTC was able to break the USD 42,200 and USD 42,500 resistance levels.
It also regained the 100 hourly Simple Moving Average. The price climbed above the 50% Fib retracement level of the downward move from the $43,488 swing high to the $42,320 low. The bulls even pushed the price above the USD 43,000 level.
However, the bears seem to be active around the $43,200 level. It is close to the 76.4% Fib retracement level of the downward move from the $43,488 swing high to the $42,320 low.
Bitcoin is now trading above $42,650 and the 100 hourly Simple Moving Average. The immediate resistance is near the $43,200 level. The next major resistance could be at USD 43,500, above which the price could start a decent rise. The next stop for the bulls could perhaps be $44,200.
Source: BTCUSD on TradingView.com
A clear move above the USD 44,200 resistance could send the price towards the USD 45,000 resistance. The next resistance is now forming around the $45,500 level. A close above the USD 45,500 level could push the price further higher. The next major resistance is at $46,500.
Another drop in BTC?
If Bitcoin fails to rise above the USD 43,500 resistance zone, it could trigger another decline. Immediate support on the downside is near the $42,900 level and the 100 hourly SMA.
The first major support is $42,450 and the channel trendline. If there is a close below $42,450, the price may gain bearish momentum. In the said case, the price could dive towards the support at $41,800.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – USD 42,900, followed by USD 42,450.
Major resistance levels – $43,200, $43,400 and $43,500.
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