Bitcoin attempted to move towards $45,000 but failed against the US dollar. BTC is correcting lower but declines may be capped below $42,800.
Bitcoin extended the rise above $44,000 before facing sellers. The price is trading above $43,500 and the 100 hourly simple moving average. There was a break below a short-term ascending channel with support near $44,200 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could drop to $43,000 or $42,800, where the bulls could take a position.
Bitcoin price faces resistance
Bitcoin price remained supported and extended the rise above the $44,000 level. BTC even cleared the $44,500 resistance and settled above the 100 hourly simple moving average.
However, there was no test of the $45,000 resistance zone. A high was formed near $44,770 before the price started a downward correction. There was a break below the $44,500 support zone. Furthermore, there was a break below a short-term ascending channel with support near $44,200 on the hourly chart of the BTC/USD pair.
Bitcoin is trading just below the 23.6% Fib retracement level of the upward move from the $41,573 low to $44,770 high. On the upside, the price could face resistance near the broken channel support at $44,200.
Source: BTCUSD on TradingView.com
The first major resistance is near the $44,500 level. A clear move above the $44,500 resistance zone could push the price further higher. The next major resistance is near $45,000, above which the price could rally towards the $45,500 resistance level.
Limited dips in BTC?
If Bitcoin fails to continue above the $44,500 resistance zone, a downward correction could begin. An immediate support on the downside is near the $43,800 zone.
The next big support is seen near the $43,150 level. It is near the 50% Fibonacci retracement level of the up move from the $41,573 low to $44,770 high. If there is a downside break below the $43,850 support zone, the price could be in trouble. The next support is located near $42,800 or the 100-hour SMA, below which there is a risk of a sharp drop in the short term.
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 50 level.
Major Support Levels – $43,800, followed by $43,150.
Major resistance levels: $44,200, $44,500 and $45,500.
This post Bitcoin Can’t Test $45K, Why Dips Might Be Attractive
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