Bitcoin Price Resumes Uptrend, Testing Key Resistance Levels
Date: 2024-01-29 Author: Dima Zakharov Categories: BLOCKCHAIN
Bitcoin has shown signs of recovery as it climbs above the $42,000 resistance level, sparking optimism among crypto enthusiasts. The digital currency established a strong support base above the $40,000 mark and began a steady ascent, breaking through the resistance levels at $41,200 and $41,500.
This upward movement has opened the door for further gains above $42,000 and the 100-hour simple moving average. Bitcoin even tested the $42,800 zone, with a peak around $42,800 before experiencing a minor pullback, dropping below the $42,200 level.
Analyzing the Fibonacci retracement level, Bitcoin tested the 23.6% correction level from the upward swing, ranging from a low of $38,518 to a high of $42,800. Additionally, a key bullish trendline is forming on the hourly BTC/USD chart, offering support around $41,500.
Currently, the price is trading above $41,500 and the 100-hour simple moving average. The nearest resistance lies near the $42,500 level, followed by a significant hurdle at $42,800, above which the price may surge and test $43,500.
A decisive breakthrough above the $43,500 resistance could propel the price toward the $44,250 resistance, with the next substantial barrier forming around $45,000. If Bitcoin fails to breach the $42,800 resistance zone, a new downtrend may begin, with immediate support near the $41,750 level.
The next major support levels are at $41,500 and the trendline. A close below $41,500 could trigger bearish momentum, potentially driving the price down to the $40,650 support or the 50% Fibonacci retracement level in the near term.
Technical Indicators:
- Hourly MACD: The MACD is currently gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index): The RSI for BTC/USD is currently above the 50 level.
Key Support Levels: $41,500, followed by $40,650.
Key Resistance Levels: $42,800, $43,500, and $45,000.
