Bitcoin remained well supported near the $42,700 support zone against the US Dollar. BTC is rising and might accelerate higher above $44,850 in the near term.
- Bitcoin is holding gains, but it is still well below the $45,000 resistance zone.
- The price is trading above $43,000 and the 100 hourly simple moving average.
- There is a key rising channel forming with support near $44,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could decline sharply if there is a clear move below the 100 hourly SMA.
Bitcoin Price Aims Fresh Increase
Bitcoin price started a downside correction below the $44,000 level. BTC even declined below the $43,000 level, but the bulls appeared near the $42,700 zone.
The price also remained stable above $42,500 and the 100 hourly simple moving average. A low was formed near $42,709 and the price started a fresh increase. There was a clear move above the $43,200 and $43,500 resistance levels.
Besides, the price climbed above the 50% Fib retracement level of the downward move from the $45,500 swing high to $42,709 low.
There is also a key rising channel forming with support near $44,000 on the hourly chart of the BTC/USD pair. Bitcoin price is now trading above $42,000 and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $44,500 level.
Source: BTCUSD on TradingView.com
The next major resistance is near the $44,850 zone or the 76.4% Fib retracement level of the downward move from the $45,500 swing high to $42,709 low, above which the price may perhaps rally above $45,000. In the stated case, the price could continue to rise towards the $46,500 level.
Downside Break in BTC?
If bitcoin fails to start a fresh increase above $44,850, it could continue to move down. An immediate support on the downside is near the $44,000 zone.
The next major support is seen near the $43,500 level and the 100 hourly simple moving average. If there is a downside break below the $43,500 support, the price could start a major decline towards the $41,200 level.
Technical indicators:
Hourly MACD – The MACD is slowly moving into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level.
Major Support Levels – $44,000, followed by $43,500.
Major Resistance Levels – $44,850, $45,000 and $45,500.