Bitcoin price is still struggling below the USD 43,500 resistance zone. BTC could start a recovery wave if there is a clear move above the USD 44,000 resistance zone.
- Bitcoin price started a consolidation phase from the $41,500 zone.
- The price is trading above USD 42,500 and the 100 hourly Simple Moving Average.
- A major ascending channel is forming with resistance near $44,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a decent recovery wave if it makes a move above the $44,000 resistance zone.
Bitcoin price faces hurdles
Bitcoin price found support near the $41,500 zone and recently entered a consolidation phase. BTC was able to recover a few points above the USD 42,000 and USD 42,200 levels.
The price even spiked above the 23.6% Fib retracement level of the key decline from the $49,000 swing high to the $41,475 low. A major ascending channel is also forming with resistance near $44,000 on the hourly chart of the BTC/USD pair.
Bitcoin is now trading above $42,500 and the 100 hourly Simple Moving Average. If the bulls remain in action, the price could recover above the USD 43,250 resistance. The first major resistance is $44,000 or the channel trendline.
Source: BTCUSD on TradingView.com
A clear move above the USD 44,000 resistance could send the price towards the USD 44,450 resistance. The next resistance is now forming around the $45,250 level. It is close to the 50% Fib retracement level of the main decline from the $49,000 swing high to the $41,475 low. A close above the USD 45,250 level could push the price further higher. The next major resistance is at $47,000.
Another drop in BTC?
If Bitcoin fails to rise above the USD 44,000 resistance zone, it could start a new decline. The immediate downside support is near the $42,800 level or the 100 hourly Simple Moving Average.
The next major support is $42,120. If there is a close below $42,120, the price may gain bearish momentum. In the mentioned case, the price could fall towards the USD 41,500 support in the short term.
Technical indicators:
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.
Major support levels – USD 42,800, followed by USD 42,120.
Major resistance levels – $43,250, $44,000 and $44,450.
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