Bitcoin price failed to extend gains above the $44,300 resistance. BTC is now moving lower and might find bids near the $42,400 support zone.
- Bitcoin started a downside correction from the $44,300 resistance zone.
- The price is trading below $43,500 and the 100 hourly Simple moving average.
- There is a key declining channel forming with support near $42,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a fresh increase from the $42,400 support zone.
Bitcoin Price Tops Again
Bitcoin price attempted a fresh increase above the $43,500 resistance zone. BTC climbed above the $44,000 level, but the bears were active near the $44,300 zone.
A high was formed near $44,300 and the price started a fresh decline. The price declined below the $44,000 and $43,500 levels. There was a move below the 23.6% Fib retracement level of the upward move from the $40,515 swing low to the $44,300 high.
Bitcoin is now trading below $43,500 and the 100 hourly Simple moving average. There is also a key declining channel forming with support near $42,850 on the hourly chart of the BTC/USD pair.
The pair is now testing the channel support, below which it might accelerate lower toward $42,400 or the 50% Fib retracement level of the upward move from the $40,515 swing low to the $44,300 high. If the bulls protect the channel support, there might be a fresh increase.
On the upside, immediate resistance is near the $43,500 level. The first major resistance is forming near $44,000 and $44,300. A close above the $44,300 resistance could start a strong rally and the price could even clear the $45,000 resistance.
Source: BTCUSD on TradingView.com
The next key resistance could be near $46,500, above which BTC could rise toward the $47,200 level. Any more gains might send the price toward $48,000.
More Losses In BTC?
If Bitcoin fails to rise above the $43,500 resistance zone, it could continue to move down. Immediate support on the downside is near the $42,800 level.
The next major support is near $42,400. If there is a move below $42,400, there is a risk of more losses. In the stated case, the price could drop toward the $41,200 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $42,400, followed by $41,200.
Major Resistance Levels – $43,500, $44,300, and $45,000.
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.