Bitcoin price fell again and tested the $40,000 support zone again. BTC is rising, but needs to clear $42,350 to move into a positive zone.
- Bitcoin attempts another increase from the $40,000 support zone.
- The price is trading below $43,600 and the 100 hourly Simple Moving Average.
- There was a break above a connecting bearish trendline with resistance near $41,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could gain bullish momentum once it crosses the USD 42,350 resistance zone.
Bitcoin price remains supported
Bitcoin price fell heavily below the USD 43,500 and USD 43,200 support levels. BTC even dipped below the USD 41,200 support before the bulls emerged. A low was formed near $39,999 and the price is now trying to make a new move higher.
The price climbed above the 23.6% Fib retracement level of the downward move from the $44,699 swing high to the $39,999 low. Additionally, there was a break above a connecting bearish trendline with resistance around $41,300 on the hourly chart of the BTC/USD pair.
However, Bitcoin is still trading below $43,600 and the 100 hourly Simple Moving Average. On the upside, immediate resistance is around the $42,000 level. The first major resistance forms around $42,350. It is close to the 50% Fib retracement level of the downward move from the $44,699 swing high to the $39,999 low.
Source: BTCUSD on TradingView.com
A close above the resistance at $42,350 could trigger a steady rise. The next major resistance could be near USD 43,000, above which BTC could rise towards the USD 44,000 level. A clear move above the USD 44,000 level could set the pace for a test of USD 45,000.
Dips offer buying opportunities in BTC?
If Bitcoin fails to rise above the USD 42,350 resistance zone, it could trigger another decline. The immediate downside support is near the USD 41,200 level.
The next major support is near USD 40,550, below which the price could test the USD 40,000 zone. If there is a move below $40,000, there is a risk of a sharp decline. In the mentioned case, the price could fall towards the USD 38,500 support in the short term.
Technical indicators:
Hourly MACD – The MACD is now gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 30 level.
Major support levels – USD 41,200, followed by USD 40,000.
Major resistance levels – $42,400, $43,200 and $44,200.
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