Bitcoin price is showing signs of recovery as it moves above the $42,000 resistance level. To continue its upward momentum, BTC needs to surpass additional resistance levels at $42,800 and $43,500. If successful, the cryptocurrency may be able to push towards the $45,000 resistance level once again.
After forming a solid support base above $40,000, Bitcoin started climbing above key resistance levels at $41,200 and $41,500. This allowed for further gains above $42,000 and the 100-hourly Simple Moving Average. The price briefly tested the $42,800 zone before experiencing a slight decline below $42,200.
Bitcoin then tested the 23.6% Fibonacci retracement level of the upward move from the $38,518 swing low to the $42,800 high. However, a key bullish trend line is forming with support near $41,500 on the hourly chart of BTC/USD. The price is currently trading above $41,500 and the 100-hourly Simple Moving Average.
The immediate resistance level is around $42,500, with the next important resistance at $42,800. If BTC manages to break these levels, it could potentially test $43,500. Moreover, surpassing the $43,500 resistance may propel the price towards the $44,250 resistance, followed by the $45,000 level. Further upward movement could lead to a major resistance at $46,500.
However, failure to rise above the $42,800 resistance may result in another decline. The immediate support on the downside is near $41,750, followed by the $41,500 support and the trend line. If the price closes below $41,500, it could gain bearish momentum and potentially drop towards the $40,650 support or the 50% Fibonacci retracement level.
Technical indicators suggest a bullish momentum, with the hourly MACD gaining pace in the bullish zone and the hourly RSI (Relative Strength Index) above the 50 level.
It is important to note that this analysis is for educational purposes only and does not constitute investment advice. It is always recommended to conduct thorough research and consider the risks before making any investment decisions.