BTC / USD
23,309.82
0.49%
(-115.09)
ETH / USD
1,653.43
0.74%
(+12.12)
XRP / USD
0.41
0.63%
(-0)
LTC / USD
98.64
0.28%
(+0.28)
EOS / USD
1.10
1.2%
(+0.01)
BCH / USD
136.75
0.61%
(-0.84)
ADA / USD
0.40
0.15%
(0)
XLM / USD
0.09
0.44%
(0)
NEO / USD
8.86
0.45%
(+0.04)
XEM / USD
0.04
1.49%
(0)
DASH / USD
61.74
0.16%
(+0.1)
USDT / USD
1.00
0%
(0)
BNB / USD
328.72
1.69%
(+5.47)
QTUM / USD
2.79
1.82%
(+0.05)
XVG / USD
0.00
0.35%
(-0)
ONT / USD
0.22
2.93%
(+0.01)
ZEC / USD
46.38
1.09%
(+0.5)
STEEM / USD
0.21
6.44%
(+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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