TA: Bitcoin Near Crucial Juncture, Why Bulls Could Aim Fresh Increase
Bitcoin price extended its decline and tested the key $40,750 support against the US Dollar. BTC could start a fresh increase as long as it is above $40,750.
Bitcoin extended its decline below the $42,000 and $41,200 support levels.
The price is now trading below $42,500 and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $42,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a decent increase as long as it is above the $40,750 support zone.
Bitcoin Price Tests Key Support
Bitcoin price remained in a bearish zone below the $42,500 level. BTC extended its decline below $42,000 and settled below the 100 hourly simple moving average.
There was a break below the $41,200 level, but the bulls protected the $40,750 support zone. A low is formed near $40,772 and the price is now rising. It surpassed the $41,200 and $41,500 levels. There was a break above the 23.6% Fib retracement level of the recent decline from the $44,327 swing high to $40,774 low.
Bitcoin is now trading below $42,500 and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $42,000 level.
The first major resistance is near the $42,100 level. There is also a major bearish trend line forming with resistance near $42,100 on the hourly chart of the BTC/USD pair. The next major resistance is near the $42,600 level and the 100 hourly simple moving average.
Source: BTCUSD on TradingView.com
The 50% Fib retracement level of the recent decline from the $44,327 swing high to $40,774 low is also near the $42,550 level. A close above the $42,600 level could push the price further higher. In the stated case, it could test the $43,500 resistance.
More Downsides In BTC?
If bitcoin fails to clear the $42,100 resistance zone, it could continue to move down. An immediate support on the downside is near the $41,200 level.
The main breakdown support is near the $40,750 zone. A close below the $40,750 support level might lead the price towards the $40,000 zone. Any more losses could trigger a larger decline towards $38,000.
Hourly MACD – The MACD is slowly losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now rising towards the 50 level.
Major Support Levels – $41,200, followed by $40,750.
Major Resistance Levels – $42,000, $42,100 and $42,600.