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TA: Bitcoin Steadies Above $42K, What Could Spark More Upsides

Started by Bitcoin, Mar 23, 2022, 04:13 am

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Bitcoin

TA: Bitcoin Steadies Above $42K, What Could Spark More Upsides

Bitcoin started a steady increase above the $42,000 resistance against the US Dollar. BTC tested the $43,400 zone and recently corrected lower.



  • Bitcoin started a downside correction after a test of $43,400.

  • The price is trading above $42,000 and the 100 hourly simple moving average.

  • There is a key bullish trend line forming with support near $41,950 on the hourly chart of the BTC/USD pair (data feed from Kraken).

  • The pair must stay above the $41,500 support zone to remain in a positive zone.


Bitcoin Price Remains In Uptrend

Bitcoin price started a steady increase after it cleared the $42,000 resistance zone. BTC gained pace for a move above the $42,500 level and settled above the 100 hourly simple moving average.


The upward move was such that the price even broke the $43,200 resistance. It traded as high as $43,402 and is currently correcting lower. There was a move below the 23.6% Fib retracement level of the recent increase from the $40,510 swing low to $43,402 high.


However, the bulls are defending the $42,000 support zone. There is also a key bullish trend line forming with support near $41,950 on the hourly chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the recent increase from the $40,510 swing low to $43,402 high.


On the upside, the price is facing resistance near the $42,800 level. The next major resistance could be near the $43,000 zone. A successful break and close above the $43,000 level might start another steady increase.



Source: BTCUSD on TradingView.com

In the stated case, the price might rise towards the $43,500 level. Any more gains could send the price towards the $44,200 level in the coming sessions.


Downside Break in BTC?

If bitcoin fails to clear the $43,000 resistance zone, it could correct further lower. An immediate support on the downside is near the $42,000 zone.


The next major support is seen near the trend line and the 100 hourly SMA. The main support sits near the $41,500 zone (the previous breakout zone). A downside break below the $41,500 support zone could push the price further lower towards $40,500.


Technical indicators:


Hourly MACD - The MACD is now losing pace in the bearish zone.


Hourly RSI (Relative Strength Index) - The RSI for BTC/USD is now above the 50 level.


Major Support Levels - $42,000, followed by $41,500.


Major Resistance Levels - $42,800, $43,000 and $43,500.


Source: TA: Bitcoin Steadies Above $42K, What Could Spark More Upsides