BTC / USD
43,824.18
0.76%
(-334.13)
ETH / USD
2,349.99
0.46%
(-10.94)
XRP / USD
0.66
1.66%
(-0.01)
LTC / USD
77.26
1.63%
(-1.28)
EOS / USD
0.85
3.5%
(+0.03)
BCH / USD
253.97
0.06%
(-0.15)
ADA / USD
0.59
2.37%
(+0.01)
XLM / USD
0.13
1.48%
(0)
NEO / USD
13.17
0.43%
(+0.06)
XEM / USD
0.04
0.15%
(0)
DASH / USD
35.27
1.77%
(+0.61)
USDT / USD
1.00
0.01%
(-0)
BNB / USD
240.25
1.45%
(-3.52)
QTUM / USD
3.51
0.04%
(-0)
XVG / USD
0.00
0.38%
(-0)
ONT / USD
0.25
0.4%
(0)
ZEC / USD
33.88
0.17%
(-0.06)
STEEM / USD
0.28
2.72%
(+0.01)

Why Bitcoin Needs To Clear $42,500 For Hopes of a Fresh Rally

0

Bitcoin found support near the $41,200 zone against the US Dollar. BTC must clear $42,500 to start a recovery wave in the near term.

  • Bitcoin extended decline and tested the $41,200 support zone.
  • The price is still trading below $42,500 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $42,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a decent recovery if there is a clear move above the $42,500 resistance.

Bitcoin Price Faces Hurdles

Bitcoin price struggled to start a decent recovery wave and extended decline below $42,000. BTC even broke the $41,500 support level and settled below the 100 hourly simple moving average.

A low was formed near $41,159 and the price is now correcting higher. There was a move above the $41,800 resistance zone. The price climbed above the 23.6% Fib retracement level of the main decline from the $43,800 swing high to $41,159 low.

On the upside, an initial resistance is near the $42,400 level and the 100 hourly simple moving average. Besides, there is a major bearish trend line forming with resistance near $42,450 on the hourly chart of the BTC/USD pair.

The trend line is close to the 50% Fib retracement level of the main decline from the $43,800 swing high to $41,159 low. An upside break above the trend line resistance could start a steady recovery wave above $42,500.

Source: BTCUSD on TradingView.com

The next key resistance is near the $43,000 level, above which the bulls might aim a test of $43,500. Any more gains may perhaps call for a test of the $44,500 resistance zone.

Fresh Drop in BTC?

If bitcoin fails to start a fresh increase above $42,500, it could start a fresh decline. An immediate support on the downside is near the $41,600 zone.

The first major support is seen near the $41,200 zone. A downside break below the $41,200 support zone may perhaps spark another major decline. The next major support is near $40,500, below which the price could even decline below the $40,000 zone.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is above the 50 level.

Major Support Levels – $41,600, followed by $41,200.

Major Resistance Levels – $42,400, $42,500 and $43,500.

Leave A Reply

Your email address will not be published.