Bitcoin Corrects Lower, Why BTC Remains In Uptrend

Bitcoin struggled to clear the $42,500 resistance against the US Dollar. BTC is correcting gains and might find bids near the $40,000 support zone.

Bitcoin started a downside correction from the $42,500 resistance zone.
The price is trading below $41,500 and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $41,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might start a fresh increase unless there is a clear move below the $40,000 support zone.

Bitcoin Price Dips Below Support
Bitcoin price made two attempts to clear the $42,500 resistance zone. BTC formed a high near the $42,400 zone and started a downside correction.
The price declined below the $42,000 and $41,500 support levels. It even traded below $41,200 and the 100 hourly simple moving average. Besides, there was a break below a key bullish trend line with support near $41,550 on the hourly chart of the BTC/USD pair.
The pair is now testing the 50% Fib retracement level of the upward move from the $38,810 swing low to $42,370 high. On the upside, the price is facing resistance near the $41,000 level.

Source: BTCUSD on TradingView.com
The next major resistance could be near the $41,200 zone and the 100 hourly SMA. A successful break and close above the $41,200 level might start a steady increase. In the stated case, the price might rise towards the $42,000 level. Any more gains might send the price towards the key $42,500 barrier in the near term.
Downside Break in BTC?
If bitcoin fails to clear the $41,200 resistance zone, it could continue to move down. An immediate support on the downside is near the $40,500 zone.
The next major support is seen near the $40,000 level. It is near the 61.8% Fib retracement level of the upward move from the $38,810 swing low to $42,370 high. A downside break below the $40,000 support zone could start a sharp decline. In this case, the price may perhaps decline towards the $38,500 level.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $40,500, followed by $40,000.
Major Resistance Levels – $41,200, $41,500 and $42,500.

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 16,825.66
ethereum
Ethereum (ETH) $ 1,233.46
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 283.79
usd-coin
USD Coin (USDC) $ 1.00
binance-usd
Binance USD (BUSD) $ 1.00
xrp
XRP (XRP) $ 0.383005
dogecoin
Dogecoin (DOGE) $ 0.095753
cardano
Cardano (ADA) $ 0.309310
matic-network
Polygon (MATIC) $ 0.888793
polkadot
Polkadot (DOT) $ 5.28
staked-ether
Lido Staked Ether (STETH) $ 1,219.49
litecoin
Litecoin (LTC) $ 77.07
shiba-inu
Shiba Inu (SHIB) $ 0.000009
okb
OKB (OKB) $ 20.92
dai
Dai (DAI) $ 1.00
solana
Solana (SOL) $ 13.59
tron
TRON (TRX) $ 0.053269
uniswap
Uniswap (UNI) $ 6.00
avalanche-2
Avalanche (AVAX) $ 13.21
leo-token
LEO Token (LEO) $ 3.78
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 16,828.57
chainlink
Chainlink (LINK) $ 6.84
cosmos
Cosmos Hub (ATOM) $ 9.58
the-open-network
The Open Network (TON) $ 1.85
ethereum-classic
Ethereum Classic (ETC) $ 18.75
monero
Monero (XMR) $ 141.99
stellar
Stellar (XLM) $ 0.084299
bitcoin-cash
Bitcoin Cash (BCH) $ 109.41
quant-network
Quant (QNT) $ 116.51
crypto-com-chain
Cronos (CRO) $ 0.064527
algorand
Algorand (ALGO) $ 0.221888
filecoin
Filecoin (FIL) $ 4.33
near
NEAR Protocol (NEAR) $ 1.69
apecoin
ApeCoin (APE) $ 3.88
vechain
VeChain (VET) $ 0.018744
hedera-hashgraph
Hedera (HBAR) $ 0.047064
internet-computer
Internet Computer (ICP) $ 4.19
eos
EOS (EOS) $ 1.00
flow
Flow (FLOW) $ 1.04
elrond-erd-2
MultiversX (Elrond) (EGLD) $ 43.93
frax
Frax (FRAX) $ 1.00
trust-wallet-token
Trust Wallet (TWT) $ 2.43
terra-luna
Terra Luna Classic (LUNC) $ 0.000165
axie-infinity
Axie Infinity (AXS) $ 8.64
the-sandbox
The Sandbox (SAND) $ 0.581042
tezos
Tezos (XTZ) $ 0.989336
theta-token
Theta Network (THETA) $ 0.873291
aave
Aave (AAVE) $ 61.13
huobi-token
Huobi (HT) $ 6.34