Why Bitcoin is At Risk of Drop Below $42,500 In Short-term

Bitcoin extended increase above the $44,000 resistance zone against the US Dollar. BTC is correcting gains and might decline further if it breaks the $42,800 support.

Bitcoin extended gains and even climbed above the $45,000 resistance zone.
The price is trading above $42,500 and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $44,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could extend decline if there is a clear move below the $42,800 support zone.

Bitcoin Price Corrects Lower
Bitcoin price remained in a positive zone above the $42,000 level. BTC gained pace for a move above the $44,000 and $44,500 levels. It even surpassed the $45,000 level and settled above the 100 hourly simple moving average.
It traded as high as $45,500 and recently started a downside correction. There was a move below the $44,000 support level. Besides, there was a break below a key bullish trend line with support near $44,000 on the hourly chart of the BTC/USD pair.
The pair even declined below the 50% Fib retracement level of the upward move from the $41,140 swing low to $45,500 high. However, the bulls defended the $42,800 support zone.
The 61.8% Fib retracement level of the upward move from the $41,140 swing low to $45,500 high also acted as a strong support. Bitcoin price is now trading above $42,500 and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $44,000 level.

Source: BTCUSD on TradingView.com
There is also a connecting bearish trend line with resistance near $44,000 on the same chart. The next major resistance is near the $44,450 zone, above which the price may perhaps start a fresh increase in the near term.
Downside Break in BTC?
If bitcoin fails to start a fresh increase above $44,000, it could continue to move down. An immediate support on the downside is near the $42,800 zone.
The next major support is seen near the $42,500 level and the 100 hourly simple moving average. If there is a downside break below the $42,500 support, the price could slide towards the $41,200 level.
Technical indicators:
Hourly MACD – The MACD is now gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $42,800, followed by $42,500.
Major Resistance Levels – $44,000, $44,450 and $45,500.

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 51,683.85
ethereum
Ethereum (ETH) $ 3,033.73
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 384.35
solana
Solana (SOL) $ 102.78
xrp
XRP (XRP) $ 0.545054
staked-ether
Lido Staked Ether (STETH) $ 3,030.53
usd-coin
USDC (USDC) $ 1.00
cardano
Cardano (ADA) $ 0.590284
avalanche-2
Avalanche (AVAX) $ 36.71
dogecoin
Dogecoin (DOGE) $ 0.086141
tron
TRON (TRX) $ 0.137610
chainlink
Chainlink (LINK) $ 18.53
polkadot
Polkadot (DOT) $ 7.74
matic-network
Polygon (MATIC) $ 0.972012
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 51,662.84
uniswap
Uniswap (UNI) $ 10.70
the-open-network
Toncoin (TON) $ 2.12
internet-computer
Internet Computer (ICP) $ 12.49
shiba-inu
Shiba Inu (SHIB) $ 0.000010
bitcoin-cash
Bitcoin Cash (BCH) $ 267.43
litecoin
Litecoin (LTC) $ 70.02
dai
Dai (DAI) $ 0.999911
filecoin
Filecoin (FIL) $ 8.44
immutable-x
Immutable (IMX) $ 3.08
cosmos
Cosmos Hub (ATOM) $ 10.28
kaspa
Kaspa (KAS) $ 0.171926
leo-token
LEO Token (LEO) $ 4.22
near
NEAR Protocol (NEAR) $ 3.70
ethereum-classic
Ethereum Classic (ETC) $ 26.26
blockstack
Stacks (STX) $ 2.53
bittensor
Bittensor (TAO) $ 576.46
hedera-hashgraph
Hedera (HBAR) $ 0.107722
optimism
Optimism (OP) $ 3.71
aptos
Aptos (APT) $ 9.47
stellar
Stellar (XLM) $ 0.116457
first-digital-usd
First Digital USD (FDUSD) $ 1.00
vechain
VeChain (VET) $ 0.044779
okb
OKB (OKB) $ 50.60
injective-protocol
Injective (INJ) $ 34.14
lido-dao
Lido DAO (LDO) $ 3.32
celestia
Celestia (TIA) $ 17.09
render-token
Render (RNDR) $ 7.47
the-graph
The Graph (GRT) $ 0.294212
mantle
Mantle (MNT) $ 0.796720
crypto-com-chain
Cronos (CRO) $ 0.093269
arbitrum
Arbitrum (ARB) $ 1.87
monero
Monero (XMR) $ 124.27
sei-network
Sei (SEI) $ 0.833213
sui
Sui (SUI) $ 1.63