Bitcoin is making up for losses and is trading above $43,000. According to technical analysis by NewsBTC’s Aayush Jindal, BTC must surpass $43,800 to continue rising in the near term.
Bitcoin Begins to Recover
Bitcoin started a decent recovery wave after forming a bottom near $41.573. There was a break above the $42,000 and $42,500 resistance levels. The price settled above the 23.6% Fib retracement level of the low from the $45,900 high to $41,570 low. Besides, there was a break above a key bearish trend line with resistance near $42,250 on the hourly chart of the BTC/USD pair.
Bitcoin is currently trading above $43,000 and the 100 hourly simple moving average. BTC also managed to break the $43,500 resistance zone. The bulls are now facing resistance near the $43,800 zone. The 50% Fib retracement level of the downward move from the $45,900 high to $41,570 high is also near the $43,800 area. A clear move above the $43,800 resistance zone could push the price higher. The next major resistance is near $44,850, above which the price could rise to the $45,500 resistance level.
Will Bitcoin Drop?
Jindal says that if Bitcoin fails to continue rising above the $43,800 resistance zone, it could initiate a downside correction. An immediate support on the downside is near the $43,200 zone. The next major support is seen near the $42,850 level. If there is a downside break below the $42,850 support zone, the price could start a fresh decline. The next support is near $42,000, below which there is a risk of a new bottom below $41,570.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
- Major Support Levels – $43,000 then $42,850
- Major Resistance Levels – $43,800, 44,850 and 45,500
29391
