Bitcoin Consolidates Below $45K, What Could Trigger A Correction

Bitcoin surged in order to break the resistance of $45,000 against the US dollar. BTC continues to consolidate gains, and could fall towards $43,000 within the next few days.

  • Bitcoin continued to rise and was trading close to $45,000 resistance.
  • The price trades above $44,000.
  • A key contracting triangle is seen forming near $44,450, according to the hourly chart of BTC/USD (data feed by Kraken).
  • If the pair moves below $43,000, it could be corrected lower.

A rally continues for bitcoin prices

Major price increases in Bitcoin have begun above $42,000. BTC managed to maintain its $43,000 mark and consolidate at $44,000.

There was a final increase, and the price reached $44,500. It traded near the $45,000 resistance where sellers faced. The price is consolidating its gains, with a slight decline to $44,500.

It is trading at $44,000, which exceeds the simple moving average of 100 hours. The price is well above the 23.6% Fib Retracement level for the upward movement from $37,030 swing high to $44,955 low.

A key contracting triangle is also emerging with resistance close to $44,450 in the hourly charts of the BTC/USD pair. Bitcoin faces resistance near the $44,200 area. It is currently nearing the $44,450 mark and the trend line triangle.

Bitcoin Price

Source: BTCUSD at TradingView.com

The $45,000 mark is the current resistance. Clear moves beyond the $45,000 level could push the price higher. The price could move to $45,500 in this case.

BTC Dips Limited

A downside correction could occur if bitcoin does not clear the $44,500 resistance area. Support for the downside lies near the $43,800 area and the trend line of the triangle.

Near the $43,000 mark is the next significant support. A downside breakout below the $43,000 level could cause the price to fall towards $41,000. This price is at the 50% Fib level of the upward swing from the $37.030 swing low and the $44,955 peak.

Indicators technical

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still correcting from the overbought zone.

Major Support Levels – $43,800, followed by $43,000.

Major Resistance Levels – $44,200, $44,450 and $45,000.

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