Bitcoin traded towards $41,200 before recovering against the US Dollar. BTC must clear $42,800 to start a fresh increase in the near term.
- Bitcoin extended decline and traded below the $42,000 support zone.
- The price is still trading below $43,000 and the 100 hourly simple moving average.
- There is a crucial bearish trend line forming with resistance near $42,780 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a fresh increase if there is a clear move above the $42,800 resistance.
Bitcoin Price Approaches Key Resistance
Bitcoin price remained in a negative zone below the $43,000 pivot level. BTC even broke the $42,000 support level and settled below the 100 hourly simple moving average.
A low was formed near $41,288 and the price is now correcting higher. There was a move above the $42,000 resistance zone. The price climbed above the 23.6% Fib retracement level of the key drop from the $43,800 swing high to $41,288 low.
On the upside, an initial resistance is near the $42,550 level. It is near the 50% Fib retracement level of the key drop from the $43,800 swing high to $41,288 low.
The main resistance is now forming near the $42,800 level. There is also a crucial bearish trend line forming with resistance near $42,780 on the hourly chart of the BTC/USD pair. An upside break above the trend line resistance could start a steady increase above $43,000.
Source: BTCUSD on TradingView.com
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