Bitcoin price is recovering higher above the USD 42,000 resistance. BTC needs to clear USD 42,800 and USD 43,500 to start an increase towards the USD 45,000 resistance.
- Bitcoin price is moving higher above the USD 42,000 resistance zone.
- The price is trading above USD 41,500 and the 100 hourly Simple Moving Average.
- A major bullish trendline is forming with support near $41,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a steady rise if it overcomes the USD 42,800 and USD 43,500 resistance levels.
Bitcoin price aims higher
Bitcoin price formed a support base above the $40,000 support zone. BTC started a decent rise above the USD 41,200 and USD 41,500 resistance levels.
It opened the doors to more gains above $42,000 and the 100 hourly Simple Moving Average. Finally, the price tested the $42,800 zone. A high formed around $42,800 before a small decline occurred. The price fell below the $42,200 level.
Bitcoin tested the 23.6% Fib retracement level of the upward move from the $38,518 swing low to the $42,800 high. A major bullish trendline is also forming with support near $41,500 on the hourly chart of the BTC/USD pair.
The price is now trading above USD 41,500 and the 100 hourly Simple Moving Average. The immediate resistance is near the $42,500 level. The next major resistance could be at USD 42,800, above which the price could rise and test USD 43,500.
Source: BTCUSD on TradingView.com
A clear move above the USD 43,500 resistance could send the price towards the USD 44,250 resistance. The next resistance is now forming around the $45,000 level. A close above the USD 45,000 level could push the price further higher. The next major resistance is at $46,500.
Another drop in BTC?
If Bitcoin fails to rise above the USD 42,800 resistance zone, it could trigger another decline. The immediate downside support is near the USD 41,750 level.
The next major support is $41,500 and the trendline. If there is a close below $41,500, the price may gain bearish momentum. In the mentioned case, the price could dive towards the $40,650 support or the 50% Fib retracement level of the upward move from the $38,518 swing low to the $42,800 high in the short term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – USD 41,500, followed by USD 40,650.
Major resistance levels – $42,800, $43,500 and $45,000.
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