Bitcoin’s price is showing signs of recovery as it moves higher above the $42,000 resistance zone. However, in order to sustain this upward momentum, BTC must overcome crucial resistance levels at $42,800 and $43,500. These resistance levels will determine whether Bitcoin can achieve a further increase towards the $45,000 resistance.
After forming a support base above the $40,000 zone, Bitcoin initiated an upward movement, surpassing the $41,200 and $41,500 resistance levels. This positive development opened the doors for more gains, propelling the price above $42,000 and the 100 hourly Simple Moving Average (SMA). As a result, Bitcoin reached a high point near $42,800 before experiencing a slight decline.
Bitcoin encountered resistance at the $42,800 level, prompting a minor pullback. The price dipped below $42,200 and tested the 23.6% Fib retracement level of the upward move from the $38,518 swing low to the $42,800 high. However, a key bullish trend line remains intact, with support near $41,500 on the hourly chart of the BTC/USD pair.
Crucial Levels
Bitcoin is currently trading above $41,500, and the 100 hourly SMA, indicating a positive trend. The immediate resistance lies near the $42,500 level. If Bitcoin manages to break through this resistance, the next key challenge will be at $42,800. A successful breach of these levels could propel the price to test $43,500, and potentially even reach the $44,250 resistance.
The Path Ahead
A clear move above the $43,500 resistance level would pave the way for Bitcoin to target the $45,000 level. Should the price surpass this milestone, further upward movement can be expected, with the next major resistance sitting at $46,500. However, in the event that Bitcoin fails to overcome the $42,800 resistance zone, it could experience another downturn.
Support and Risk Factors
Immediate support on the downside is anticipated near the $41,750 mark, followed closely by the key support at $41,500 along the established bullish trend line. A close below $41,500 could trigger bearish momentum, potentially leading to a dive towards the $40,650 support level or the 50% Fib retracement level of the recent upward move.
Analyzing the technical indicators, the hourly MACD demonstrates an increasing bullish momentum, indicating a favorable trend for Bitcoin. Furthermore, the hourly Relative Strength Index (RSI) for BTC/USD is above the 50 level, suggesting an overall positive sentiment in the market.
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