The price of bitcoin entered a period of significant growth over the $42,000 zone. The Bitcoin (BTC) market is now consolidating gains and may continue to climb toward the $45,000 zone.
The value of bitcoin increased from $42,200 to $43,200 throughout the course of the day.
Price is currently trading at a level that is higher than $43,000 and the 100 hourly simple moving average.
The hourly chart of the Bitcoin to US Dollar pair (data feed from Kraken) shows the formation of two positive trend lines with support between $43,900 and $42,000.
It appears that the pair is getting ready to make a new rise that will take it over the $44,000 barrier.
Price of Bitcoin Continues to Be Supported
A significant gain in the price of bitcoin began as it broke over the $42,000 barrier zone. Bitcoin (BTC) had a rise and crossed the $43,200 resistance zone. Prior to the price beginning a little decline, a new multi-month high was established close to $44,465 before the price began to decline.
A decline occurred below the $44,000 level of the market. The price tried to break over the 23.6% Fibonacci retracement level of the upward advance that occurred from the swing low of $39,475 to the high of $44,465. Nevertheless, the bulls continued to be aggressive above the support zone located at $43,200.
Additionally, the price of bitcoin is trading higher above $43,500 and the 100 hourly simple moving average. In addition, on the hourly chart of the Bitcoin to US Dollar pair, there are two positive trend lines that are emerging with support between $43,900 and $42,000 simultaneously. The second trend line is located in close proximity to the 61.8% Fibonacci retracement level of the upward movement that occurred from the swing low of $39,475 to the high of $44,465.
In the direction of the upward, the level of $44,250 represents immediate resistance. It is possible that the price may rise toward the $45,000 level if it is able to overcome the first significant barrier that is building at $44,450 today.
A price that closes over the $45,000 resistance level has the potential to propel the price farther higher. The next significant barrier might be located close to $46,200; if it is overcome, Bitcoin could continue to climb toward the $47,500 mark.
A Brief Drop in Bitcoin Prices?
There is a possibility that Bitcoin would begin a downward correction if it is unable to break through the $44,250 barrier zone. Immediately available support on the downside may be found close to the level of $43,900 and the trend line.
The next significant support is located close to $42,550, and if the price falls below that level, it may challenge the second trend line. If there is a move below $42,000, there is a possibility that there may be more losses. In the scenario that has been presented, the price can fall in the near future approaching the support level of $41,200.
Indices of technical nature:
The MACD is currently gaining momentum in the bullish zone, as seen by the hourly MACD.
Relational Strength Index (RSI) on an hourly basis – The relative strength index (RSI) for Bitcoin to US Dollars is now higher than the 50 mark.
Significant Support Levels: $43,900, followed by $42,000 as the next level.
Significant levels of resistance are $44,250, $44,450, and $45,000 respectively.
