Bitcoin saw a gradual rise in value above $42,000 against the US Dollar. BTC reached the $43,400 level and has since corrected its position lower.
- Bitcoin underwent a downtrend after passing the $43,400 threshold.
- The price traded above $42,000, and the simple 100-hour moving average is at its highest.
- On the hourly chart for the BTC/USD pair, there is support close to $41,950. This trend line forms a bullish signal (data feed Kraken).
- To remain positive, the pair must maintain a level above $41,500.
Bitcoin Prices Remain in Uptrend
The $42,000 resistance area was cleared and Bitcoin’s price began to increase steadily. BTC gained momentum to move higher than the $42,500 mark and settled well above the 100 hourly simple moving mean.
This upward movement was so strong that the price broke the $43,200 resistance. It reached $43,402 at one point and is now correcting downward. It moved below the 23.6% Fib Retracement Level of the recent rise from $40,510 swing lows to $43,402 highs.
The $42,000 support area is being defended by the bulls. On the hourly charts of BTC/USD, there is a bullish trend line that forms with support at $41,950. It is near the 50% Fib level for the most recent spike from $43,402 low to $40,510 high.
The upside is that the price faces resistance at the $42,800 mark. Near the $43,000 level could come next. The steady growth could begin with a successful break above $43,000.
Source: BTCUSD from TradingView.com
If this is the case, then the price may rise to the $43,500 mark. The price could rise to $44,200 if there are more gains.
What is the Downside to Bitcoin?
It could go further lower if bitcoin does not clear the $43,000 barrier. The $42,000 area is a support zone for the downside.
You can see the trendline and the 100-hourly SMA as the next major support. This support is located near the $41,500 area (the former breakout zone). The price could fall further to $40,500 if it breaks below the $41,500 support area.
Indicators technical
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $42,000, followed by $41,500.
Major Resistance Levels – $42,800, $43,000 and $43,500.
