BTC / USD
62,079.02
0.21%
(+129.01)
ETH / USD
3,422.46
0.02%
(-0.52)
XRP / USD
0.63
6.8%
(+0.04)
LTC / USD
90.05
6.26%
(+5.3)
EOS / USD
0.99
12.75%
(+0.11)
BCH / USD
401.27
26.83%
(+84.88)
ADA / USD
0.75
11.04%
(+0.07)
XLM / USD
0.13
7.89%
(+0.01)
NEO / USD
15.87
5.48%
(+0.83)
XEM / USD
0.05
2.18%
(0)
DASH / USD
35.25
6.53%
(+2.16)
USDT / USD
1.00
0.05%
(0)
BNB / USD
409.41
0.44%
(+1.81)
QTUM / USD
4.01
7.91%
(+0.29)
XVG / USD
0.01
1.38%
(-0)
ONT / USD
0.30
4.59%
(+0.01)
ZEC / USD
30.51
5.11%
(+1.48)
STEEM / USD
0.29
3.14%
(+0.01)

Why Bitcoin is At Risk of Drop Below $42,500 In Short-term

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Bitcoin extended increase above the $44,000 resistance zone against the US Dollar. BTC is correcting gains and might decline further if it breaks the $42,800 support.

  • Bitcoin extended gains and even climbed above the $45,000 resistance zone.
  • The price is trading above $42,500 and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $44,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could extend decline if there is a clear move below the $42,800 support zone.

Bitcoin Price Corrects Lower

Bitcoin price remained in a positive zone above the $42,000 level. BTC gained pace for a move above the $44,000 and $44,500 levels. It even surpassed the $45,000 level and settled above the 100 hourly simple moving average.

It traded as high as $45,500 and recently started a downside correction. There was a move below the $44,000 support level. Besides, there was a break below a key bullish trend line with support near $44,000 on the hourly chart of the BTC/USD pair.

The pair even declined below the 50% Fib retracement level of the upward move from the $41,140 swing low to $45,500 high. However, the bulls defended the $42,800 support zone.

The 61.8% Fib retracement level of the upward move from the $41,140 swing low to $45,500 high also acted as a strong support. Bitcoin price is now trading above $42,500 and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $44,000 level.

Source: BTCUSD on TradingView.com

There is also a connecting bearish trend line with resistance near $44,000 on the same chart. The next major resistance is near the $44,450 zone, above which the price may perhaps start a fresh increase in the near term.

Downside Break in BTC?

If bitcoin fails to start a fresh increase above $44,000, it could continue to move down. An immediate support on the downside is near the $42,800 zone.

The next major support is seen near the $42,500 level and the 100 hourly simple moving average. If there is a downside break below the $42,500 support, the price could slide towards the $41,200 level.

Technical indicators:

Hourly MACD – The MACD is now gaining momentum in the bearish zone.

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

Major Support Levels – $42,800, followed by $42,500.

Major Resistance Levels – $44,000, $44,450 and $45,500.

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