6 February 2024
Bitcoin price is consolidating above the $42,250 support zone. BTC could start a decent increase if it clears the $43,000 and $43,400 resistance levels.
Bitcoin price failed again to clear the $43,400 resistance zone and corrected lower.
The price is trading below $43,000 and the 100 hourly Simple moving average.
There is a major rising channel forming with support at $42,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to decline if there is a clear move below the $42,250 support.
Bitcoin Price Holds Support
Bitcoin price made another attempt to clear the $43,400 and $43,500 resistance levels. However, BTC struggled to extend its gains and recently started another decline below $43,000.
There was a move below the $42,800 support. A low is formed near $42,320 and the price is now consolidating losses. There is also a major rising channel forming with support at $42,400 on the hourly chart of the BTC/USD pair.
Bitcoin is now trading below $43,000 and the 100 hourly Simple moving average. Immediate resistance is near the $42,900 level. It is near the 50% Fib retracement level of the downward wave from the $43,489 swing high to the $42,320 low.
The next key resistance could be $43,200 and the 76.4% Fib retracement level of the downward wave from the $43,489 swing high to the $42,320 low, above which the price could start a decent increase.
Source: BTCUSD on TradingView.com
The next stop for the bulls may perhaps be $43,500. A clear move above the $43,500 resistance could send the price toward the $44,000 resistance. The next resistance is now forming near the $44,200 level. A close above the $44,200 level could push the price further higher. The next major resistance sits at $45,000.
Downside Break In BTC?
If Bitcoin fails to rise above the $43,000 resistance zone, it could start another decline. Immediate support on the downside is near the $42,320 level.
The first major support is $42,250. If there is a close below $42,250, the price could gain bearish momentum. In the stated case, the price could dive toward the $41,200 support.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $42,320, followed by $42,250.
Major Resistance Levels – $43,000, $43,250, and $43,500.