Bitcoin price failed to extend gains above the $44,300 resistance. BTC is now moving lower and might find bids near the $42,400 support zone.
Bitcoin started a downside correction from the $44,300 resistance zone.
The price is trading below $43,500 and the 100 hourly Simple moving average.
There is a key declining channel forming with support near $42,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh increase from the $42,400 support zone.
Bitcoin Price Tops Again
Bitcoin price attempted a fresh increase above the $43,500 resistance zone. BTC climbed above the $44,000 level, but the bears were active near the $44,300 zone.
A high was formed near $44,300 and the price started a fresh decline. The price declined below the $44,000 and $43,500 levels. There was a move below the 23.6% Fib retracement level of the upward move from the $40,515 swing low to the $44,300 high.
Bitcoin is now trading below $43,500 and the 100 hourly Simple moving average. There is also a key declining channel forming with support near $42,850 on the hourly chart of the BTC/USD pair.
The pair is now testing the channel support, below which it might accelerate lower toward $42,400 or the 50% Fib retracement level of the upward move from the $40,515 swing low to the $44,300 high. If the bulls protect the channel support, there might be a fresh increase.
On the upside, immediate resistance is near the $43,500 level. The first major resistance is forming near $44,000 and $44,300. A close above the $44,300 resistance could start a strong rally and the price could even clear the $45,000 resistance.
Source: BTCUSD on TradingView.com
The next key resistance could be near $46,500, above which BTC could rise toward the $47,200 level. Any more gains might send the price toward $48,000.
More Losses In BTC?
If Bitcoin fails to rise above the $43,500 resistance zone, it could continue to move down. Immediate support on the downside is near the $42,800 level.
The next major support is near $42,400. If there is a move below $42,400, there is a risk of more losses. In the stated case, the price could drop toward the $41,200 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $42,400, followed by $41,200.
Major Resistance Levels – $43,500, $44,300, and $45,000.
