Bitcoin (BTC) Price Analysis: Continuing to Find Support, What Are the Key Levels?
Bitcoin price started a fresh increase above the $40,000 resistance zone against the US Dollar. Bitcoin price started a fresh increase above the $40,000 resistance zone against the US Dollar. BTC tested the $45,000 resistance zone before starting a downside correction. According to technical analysis by NewsBTC's Aayush Jindal:
• Bitcoin gained strength above the $40,000 and $43,500 resistance levels.
• The price is now trading above $42,000 and the 100 hourly simple moving average.
• There was a break below a key uptrend line with support near $44,500 on the hourly chart of the BTC/USD pair (data from Kraken).
• The pair is correcting gains but bulls are likely to remain active around $42,000.
Bitcoin (BTC) Price Continues to Find Support
There was a clear break above the $42,000 barrier and a close above the 100 hourly simple moving average. Finally, there was also a break above the $43,500 resistance zone. The pair tested the $45,000 resistance and settled as high as $45,339.
Recently, it started a downside correction below $45,000. The pair traded below the $44,000 support zone. There was a break below a key bullish trend line with support near $44,500 on the hourly chart of the BTC/USD pair.
The pair traded below the 23.6% Fib retracement level of the rally from the $37,365 high to $45,339 high. It is currently consolidating near the $43,000 support zone. An initial resistance on the upside is near the $44,000 level. The first key resistance is near the $45,000 level.
Therefore, a close above the $45,000 resistance zone could trigger another increase. The next major resistance is near the $46,500 level. Any further gains could lead the price towards the $48,000 level.
Will Bitcoin (BTC) Drop?
If bitcoin fails to break above the $44,000 and $45,000 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $43,000 level.
The first major support is now near the $42,000 region and the 100 hourly SMA. The main support is near the $41,200 level. This is close to the 50% Fib retracement level of the recent rally from the $37,365 high to $45,339 high.
• Hourly MACD – The MACD is slowly losing momentum in the bullish zone.
• Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
• Major Support Levels – $42,000 then $41,200
• Major Resistance Levels – $44,000, $44,500 and $45,000