Bitcoin price experienced a slight dip on Christmas Day but remains appealing to investors due to its attractive potential for gains. The price failed to surpass the resistance at $44,300 and is currently moving lower towards the support zone at $42,400. However, there is still a possibility of a fresh increase from this support level.
Earlier, Bitcoin attempted to rise above the $43,500 resistance zone and briefly climbed above $44,000. However, it faced selling pressure near $44,300, resulting in a decline. The price is currently below $43,500 and the 100 hourly Simple Moving Average. Additionally, there is a declining channel forming with support near $42,850 on the BTC/USD pair’s hourly chart.
If the price breaks below the channel support, it could accelerate lower towards $42,400 or the 50% Fib retracement level. On the other hand, if the channel support holds, there is potential for a fresh increase. The immediate resistance is near $43,500, with major resistance forming near $44,000 and $44,300. A break above $44,300 could trigger a strong rally, potentially surpassing the $45,000 resistance.
If Bitcoin fails to rise above the $43,500 resistance, it could continue to move downwards. The immediate support on the downside is near $42,800, followed by the major support at $42,400. A breach below $42,400 may lead to further losses and a potential decline towards the $41,200 support level.
As always, it is important to conduct thorough research and consider the associated risks before making any investment decisions.