Overview: Bitcoin experienced a downside correction after failing to surpass the $44,300 resistance level. The price is now below $43,500 and the 100 hourly Simple Moving Average (SMA). A key declining channel is forming with support around $42,850 on the hourly chart.
Recent Price Movement: Bitcoin attempted to increase above $43,500 but faced resistance near $44,300. The subsequent decline took the price below $43,500 and the 100 hourly SMA. A high was formed near $44,300.
Current Scenario: Bitcoin is testing the channel support, and a break below it may lead to further declines towards $42,400 or the 50% Fib retracement level. If the channel support holds, there could be a potential for a fresh increase.
Resistance and Upside Potential: Immediate resistance is at $43,500, followed by major resistance at $44,000 and $44,300. A close above $44,300 could initiate a strong rally, targeting $45,000 and potentially $46,500 and $47,200.
Downside Risks: If Bitcoin fails to rise above $43,500, it might continue moving down. Immediate support is around $42,800, followed by a major support level at $42,400. A break below $42,400 could lead to more losses, with a potential drop towards $41,200.
Technical Indicators:
- Hourly MACD: The MACD is gaining pace in the bearish zone.
- Hourly RSI: The RSI for BTC/USD is below the 50 level, indicating a bearish sentiment.
Conclusion: The Bitcoin price is currently in a corrective phase, with a key support level at $42,400. The outcome will depend on whether the price holds the support and rebounds or breaks below, leading to further losses. Traders are closely watching the resistance levels at $43,500 and $44,300 for potential bullish momentum.
(Note: The provided information is based on the mentioned source and may not reflect real-time market conditions. It’s essential to check the latest market data and trends for accurate analysis.
