Bitcoin started a steady rise above the $42,000 resistance against the US dollar. BTC tested the $43,400 zone and recently corrected lower.
Bitcoin started a downward correction after testing at $43,400. The price is trading above $42,000 and the 100 hourly simple moving average. A major bullish trendline is forming with support near $41,950 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair needs to stay above the $41,500 support zone to remain in a positive zone.
Bitcoin price continues in uptrend
Bitcoin price started rising steadily after it cleared the $42,000 resistance zone. BTC gained pace for a move above the $42,500 level and settled above the 100 hourly simple moving average.
The upward move was such that the price even broke the USD 43,200 resistance. It traded as high as $43,402 and it is currently correcting lower. There was a move below the 23.6% Fib retracement level from the recent rise from the $40,510 swing low to $43,402 high.
However, the bulls are defending the $42,000 support zone. A major bullish trendline is also forming with support near $41,950 on the hourly chart of the BTC/USD pair. The trendline is close to the 50% Fib retracement level from the recent rise from the $40,510 swing low to $43,402 high.
On the upside, the price is facing resistance near the USD 42,800 level. The next major resistance could be near the $43,000 zone. A successful break and close above the USD 43,000 level could spark another steady rise.
Source: BTCUSD on TradingView.com
In the mentioned case, the price may rise towards the $43,500 level. More gains could send the price towards the $44,200 level in the coming sessions.
Downside in BTC?
If bitcoin fails to clear the $43,000 resistance zone, it could correct further lower. An immediate support on the downside is near the $42,000 zone.
The next major support can be seen near the trendline and the 100 hour SMA. The main support is near the $41,500 zone (the previous breakout zone). A downward breach below the $41,500 support zone could push the price further towards $40,500.
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.
Key support levels – $42,000, followed by $41,500.
Major resistance levels – $42,800, $43,000 and $43,500.