TA: Bitcoin Reaches Key Juncture, Why Recovery Won’t Be Easy
Bitcoin traded towards $41,200 before recovering against the US Dollar. BTC must clear $42,800 to start a fresh increase in the near term. Bitcoin extended decline and traded below the $42,000 support zone. The price is still trading below $43,000 and the 100 hourly simple moving average. There is a crucial bearish trend line forming with resistance near $42,780 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start a fresh increase if there is a clear move above the $42,800 resistance. Bitcoin Price Approaches Key Resistance Bitcoin price remained in a negative zone below the $43,000 pivot level. BTC even broke the $42,000 support level and settled below the 100 hourly simple moving average. A low was formed near $41,288 and the price is now correcting higher. There was a move above the $42,000 resistance zone. The price climbed above the 23.6% Fib retracement level of the key drop from the $43,800 swing high to $41,288 low. On the upside, an initial resistance is near the $42,550 level. It is near the 50% Fib retracement level of the key drop from the $43,800 swing high to $41,288 low. The main resistance is now forming near the $42,800 level. There is also a crucial bearish trend line forming with resistance near $42,780 on the hourly chart of the BTC/USD pair. An upside break above the trend line resistance could start a steady increase above $43,000. Source: BTCUSD on TradingView.com The next key resistance is near the $43,500 level. Any more gains may perhaps call for a test of the $44,000 resistance zone. The next major resistance is near the $44,800 level. Fresh Drop in BTC? If bitcoin fails to start a fresh increase above $42,800, it could start a fresh decline. An immediate support on the downside is near the $42,200 zone. The first major support is seen near the $42,000 zone. A downside break below the $42,000 support zone could push the price back towards the $41,200 support zone. The next major support is near $40,500, below which the bears might gain strength. 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 – $42,000, followed by $41,200. Major Resistance Levels – $42,550, $42,800 and $43,500.
