TA: Bitcoin Corrects Gains, Why Dips Remain Attractive To Bulls
Bitcoin price started a fresh increase above the $40,000 resistance zone against the US Dollar. BTC tested the $45,000 resistance zone before it started a downside correction.
- Bitcoin gained traction above the $40,000 and $43,500 resistance levels.
- The price is now trading above $42,000 and the 100 hourly simple moving average.
- There was a break below a key bullish trend line with support near $44,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is correcting gains, but the bulls are likely to remain active near $42,000.
Bitcoin Price Remains Supported
Bitcoin price started a strong rally above the $40,000 resistance, after ethereum’s surge. BTC surpassed the $41,200 resistance zone to move into a positive zone.
There was a clear break above the $42,000 barrier and a close above the 100 hourly simple moving average. Finally, there was a break above the $43,500 resistance zone. The pair tested the $45,000 resistance and a high was formed near $45,339.
Recently, there was a downside correction below $45,000. The pair traded below the $44,000 support zone. There was also a break below a key bullish trend line with support near $44,500 on the hourly chart of the BTC/USD pair.
The pair traded below the 23.6% Fib retracement level of the recent rally from the $37,365 swing low to $45,339 high. It is now consolidating near the $43,000 support zone. On the upside, an initial resistance is near the $44,000 level. The first key resistance is near the $45,000 level.
Source: BTCUSD on TradingView.com
Therefore, a close above the $45,000 resistance zone might trigger another increase. The next major resistance is near the $46,500 level. Any more gains could lead the price towards the $48,000 level.
Dips Supported in BTC?
If bitcoin fails to climb above the $44,000 and $45,000 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $43,000 level.
The first major support is now near the $42,000 zone and the 100 hourly SMA. The main support is near the $41,200 level. It is near the 50% Fib retracement level of the recent rally from the $37,365 swing low to $45,339 high.
Hourly MACD – The MACD is slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $42,000, followed by $41,200.
Major Resistance Levels – $44,000, $44,500 and $45,000.