Bitcoin price formed a base above the USD 40,000 support zone. BTC is now struggling to break and consolidate the USD 43,000 resistance zone.
- Bitcoin started a new rise against the $40,000 support base.
- The price is trading above $42,000 and the 100 hourly Simple Moving Average.
- There was a break above a connecting bearish trendline with resistance near $41,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to rise if there is a clear move above the $43,000 resistance.
Bitcoin price regains strength
Bitcoin price remained well above the $40,000 support zone. BTC formed a base and recently started a new rise above the USD 41,000 resistance.
There was a break above a connecting bearish trendline with resistance around $41,050 on the hourly chart of the BTC/USD pair. The pair gained strength above the 50% Fib retracement level of the key decline from the $44,699 swing high to the $39,999 low.
Finally, the price tested the USD 43,000 resistance zone. Bitcoin spiked above the 61.8% Fib retracement level of the key decline from the $44,699 swing high to the $39,999 low.
BTC is now trading above $42,000 and the 100 hourly Simple Moving Average. On the upside, immediate resistance is around the $43,200 level. The first major resistance forms around $43,500. A close above the resistance at $43,500 could trigger a steady rise.
Source: BTCUSD on TradingView.com
The next major resistance could be near USD 44,500, above which BTC could rise towards the USD 45,000 level. A clear move above the USD 45,000 level could set the pace for a test of USD 46,500.
Another drop in BTC?
If Bitcoin fails to rise above the USD 43,200 resistance zone, it could trigger another decline. The immediate downside support is near the $42,500 level and the 100 hourly Simple Moving Average.
The next major support is near USD 42,000, below which the price could test the USD 41,200 zone. If there is a move below $41,200, there is a risk of more losses. In the mentioned case, the price could fall towards the $40,000 support in the short term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major support levels – USD 42,500, followed by USD 42,000.
Major resistance levels – $43,200, $44,000 and $45,000.
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