Bitcoin experienced a downtrend, breaking below the crucial $42,200 support zone. However, the cryptocurrency established a base above $41,200 and recently initiated a recovery.
After reaching a low of $41,317, Bitcoin is currently on an upward trajectory. The price surpassed the $42,000 resistance, exceeding the 50% Fibonacci retracement level calculated from the decline between the $43,792 swing high and the $41,317 low.
At present, Bitcoin is trading above $42,200 and the 100-hourly Simple Moving Average. The hourly chart for the BTC/USD pair reveals the formation of a significant bullish trend line, providing support for around $42,280.
Looking ahead, the immediate resistance is anticipated near the $42,800 level, in proximity to the 61.8% Fibonacci retracement level of the recent downward movement. The primary resistance lies at $43,200, and a decisive breakthrough beyond this point could propel the price higher.
The critical obstacle to overcome is at $43,800. Surpassing this resistance level may trigger a substantial upward movement towards the $44,500 level, with the potential for further gains towards $45,000 and eventually $46,200.
However, a renewed decline may occur if Bitcoin fails to breach the $43,200 resistance. Initial support on the downside is evident near the $42,250 level, along with the mentioned bullish trend line.
A more significant support zone lies around $41,620, and breaching this level could elevate the risk of additional losses. In such a scenario, the price might head towards the $40,500 support in the short term.
| Parameter | Value |
|---|---|
| Initial Support Zone | $42,200 |
| Recent Low | $41,317 |
| Current Price | Above $42,200 |
| 100-hourly SMA | Above $42,200 |
| Bullish Trend Line Support | Near $42,280 |
| Immediate Resistance | $42,800 |
| 61.8% Fib Retracement Level | $42,800 |
| First Major Resistance | $43,200 |
| Main Hurdle | $43,800 |
| Potential Upward Targets | $44,500, $45,000, $46,200 |
| Initial Support on Downside | $42,250 |
| Additional Support | Near $41,620 |
| Critical Support Zone | $40,500 |