Bitcoin’s increase surpassed the $44,000 mark against the US Dollar. BTC continues to recover from its losses but may still find support at the $42,000 level.
- Bitcoin rose higher than $44,000, before being sold.
- It is currently trading at $42,750, with the simple 100-hour moving average.
- A break was seen below the bullish trend line, with support close to $43,250 in the hourly chart for the BTC/USD pair. (Data feed from Kraken).
- Although the pair has corrected gains, dips below $42,000 could still be possible.
Bitcoin price corrects gains
Bitcoin’s price climbed above the $43,200 level. BTC even soared over the $44,000 mark twice before the bears got involved.
Near $44,420 was the high and now it is correcting lower. Below the 23.6% Fib level, which was the critical increase from the swing low of $39660 to the high at $44,420, there was a movement. On the hourly chart for the BTC/USD pair, the market broke below the 23.6% Fib retracement level of the key increase from $39,660 swing low to $44,420 high.
Bitcoin’s price currently trades at around $42,750. This is also close to the 100-hourly simple moving mean. An initial resistance level of $43,000 is possible on the upside.
Source: BTCUSD from TradingView.com
Near the $43,200 mark is the next significant resistance. The price could reach the $44,000 barrier if it moves clear of the $43,200 mark. A test of $44,400 might be required if there are any further gains. Near the $45,500 resistance level are the bears.
BTC Losses:
Bitcoin could fall further if it fails to increase its price above $43,200. Near the $42,500 level, there is immediate support. You will see the first support near $42,000.
Also, the Fib retracement of 50% is close to the $42,000 level. Price could reach $41,500 if it breaks below the $42,000 support level. In the next sessions, any further losses could push the price to the $40,000.
Indicators technical
Hourly MACD – The MACD is slowly losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $42,500, followed by $42,000.
Major Resistance Levels – $43,200, $44,000 and $44,400.