Bitcoin price corrected lower and tested the USD 42,800 support zone. BTC is now showing positive signs and could attempt another surge above $44,000.
- Bitcoin holds gains above the $42,500 pivot level.
- The price is trading above USD 42,800 and the 100 hourly Simple Moving Average.
- A major bullish trendline is forming with support near $42,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely gearing up for another surge above the $44,000 level.
Bitcoin price looks fresh
Bitcoin price started a downward correction below the USD 44,000 level. BTC fell below the USD 43,500 level, but the bulls remained active. The price found bids near the 50% Fib retracement level of the upward move from the $41,427 swing low to the $44,465 high.
Bitcoin is still trading above $42,800 and the 100 hourly Simple Moving Average. There is also a major bullish trendline forming with support near $42,900 on the hourly chart of the BTC/USD pair.
The price is now rising and showing positive signs above the USD 43,000 level. On the upside, immediate resistance is around the $44,200 level. The first major resistance forms around $44,450, above which the price could gain bullish momentum and rise towards $45,000.
Source: BTCUSD on TradingView.com
A close above the $45,000 resistance could trigger a strong upside move. The next major resistance could be near USD 46,000, above which BTC could rise towards the USD 47,200 level.
Are dips limited in BTC?
If Bitcoin fails to rise above the USD 44,450 resistance zone, it could trigger another decline. The immediate downside support is near the $42,900 level and the trendline.
The next major support is near $42,580 or the 61.8% Fib retracement level of the upward move from the $41,427 swing low to the $44,465 high, below which the price could test the $42,150 zone. If there is a move below $42,150, there is a risk of more downside. 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 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 42,900, followed by USD 42,150.
Major resistance levels – $44,250, $44,450 and $45,000.