Bitcoin price has been showing promising signs as it surges past the $42,500 resistance level. With positive momentum building up, experts predict that the leading cryptocurrency may extend its increase towards the $45,000 resistance mark.
BTC started its ascent by surpassing the crucial $41,200 resistance zone. Not only did it manage to break above $42,500, but it also crossed the $42,800 resistance, signaling a shift towards a positive zone. The optimistic market sentiment pushed the price above $43,000, propelling it towards $43,800. At this point, a new weekly high was formed near $43,779, and the price is currently consolidating these gains.
Moreover, Bitcoin is trading above the 23.6% Fib retracement level of the upward movement from the $41,651 swing low to the $43,779 high. It has also maintained its position above $43,000, supported by the 100 hourly Simple Moving Average. Additionally, traders can observe the formation of a major bullish trend line with support near $42,150 on the hourly chart of the BTC/USD pair, which indicates strong buying momentum.
Bitcoin faces immediate resistance at the $43,800 level. Overcoming this obstacle would pave the way for the next key resistance level at $44,200. If successfully breached, the price may rise further and make a push towards $44,500. However, the true test lies beyond this threshold, as a clear move above the $44,500 resistance could potentially propel the price towards the significant $45,000 resistance.
Despite the favorable upward trajectory, Bitcoin might encounter a downside correction if it fails to breach the $43,800 resistance zone. In this scenario, immediate support is expected near the $43,200 level, followed by a more critical support level at $42,500. The primary support zone remains at $42,200, which coincides with the trend line. If the price slips below $42,200, it could gain bearish momentum and eventually decline towards the $40,650 support level.
Analyzing the technical indicators, the hourly MACD demonstrates a gain in bullish momentum. The MACD is currently in the bullish zone, suggesting higher buying pressure. Furthermore, the hourly RSI (Relative Strength Index) for BTC/USD is indicating positive signs as it is above the 50 level.
Bitcoin’s price shows promising signs, gaining pace above the $42,500 resistance zone. The positive momentum is expected to continue, potentially driving the price towards the $45,000 resistance level. However, the path to reaching this milestone faces numerous challenges, with key resistance levels to overcome and crucial support zones to maintain. Traders should exercise caution and conduct thorough research before making any investment decisions, as investing in cryptocurrency always carries inherent risks.
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