Bitcoin has found support at the $41,200 level against the US Dollar. To start a wave of recovery, BTC needs to clear $42,500.
- Bitcoin’s decline continued and the support zone of $41,200 was tested.
- The current price trades below $42,500, and is lower than the simple 100-hour moving average.
- On the hourly chart for the BTC/USD pair, there is a significant bearish trendline with resistance close to $42,450 (datafeed from Kraken).
- A clear break above the $42,500 resistance could lead to a good recovery.
Bitcoin Price Faces Several Hurdles
BTC price failed to recover and fell below $42,000 for a long time. BTC broke even the $41,500 level of support and settled lower than the 100-hourly simple moving average.
The price fell to $41,159, and is currently correcting higher. The price moved above the $41,800 resistance level. Price climbed to above 23.6% Fib Retracement Level of main decline, from $43,800 swing high and $41,159 low.
Surprisingly, the initial resistance for the BTC/USD pair is located near the $42,400 mark and the 100 hourly simple movement average. On the hourly chart for the BTC/USD pair, there’s a bearish trendline that is emerging with resistance close to $42,450.
The trend line is near the 50% Fib level of the major decline between the $43,800 swing high and $41,159 lowest. If the trend line resistance is broken, an upside breakout could lead to a steady wave of recovery that reaches $42,500.
Source: BTCUSD at TradingView.com
Next is the $43,000 resistance level. Above that, the bulls may aim for a test at $43,500. A test of $44,500 might be required if there are any further gains.
BTC Drops Freshly
It could plunge if bitcoin does not see a significant increase in price beyond $42,500. Support for the downside lies in the vicinity of $41,600.
At the $41,200 level, we can see the first major support. A break below $41,200 could trigger another big decline. Near $40,500 is the next support zone, and below that the price may even fall below $40,000
Technical indicators
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is above the 50 level.
Major Support Levels – $41,600, followed by $41,200.
Major Resistance Levels – $42,400, $42,500 and $43,500.