Bitcoin Revisits Breakout Zone, Can Bulls Make It?

Bitcoin started a fresh increase above the $42,500 resistance against the US Dollar. BTC may soon attempt an upside break above the $43,500 resistance zone.

• Bitcoin remained supported near $42,000 and started a fresh increase.
• The price is trading above $42,500 and the 100 hourly simple moving average.
• There is a major bullish trend line forming with support near $42,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could accelerate higher if there is a clear move above the $43,300 resistance zone.

Bitcoin Price Eyes Upside Break

Bitcoin price found support near the $42,000 zone after a downside correction. BTC formed a base and started a fresh increase above the $42,500 resistance zone.

There was a clear move above the $42,800 level and the price settled above the 100 hourly simple moving average. The price even spike above the $43,000 level and formed a high near $43,288. It is now consolidating near the $43,000 level.

There was a move below the 23.6% Fib retracement level of the recent wave from the $41,811 swing low to $43,288 high. Besides, there is a major bullish trend line forming with support near $42,300 on the hourly chart of the BTC/USD pair.

On the upside, the price is facing resistance near the $43,300 level. The next major resistance could be near the $43,500 zone. A successful break and close above the $43,500 level might start another steady increase.

Source: BTCUSD on TradingView.com

In the stated case, the price might rise towards the $44,200 level. Any more gains could send the price towards the $45,000 level in the near term.

Dips Limited in BTC?

If bitcoin fails to clear the $43,500 resistance zone, it could correct further lower. An immediate support on the downside is near the $42,500 zone.

The next major support is seen near the trend line and $42,300. It is near the 61.8% Fib retracement level of the recent wave from the $41,811 swing low to $43,288 high. The main support is still near the $42,000 zone. A downside break below the $42,000 support zone could start a drop towards the $40,500 level.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

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

Major Support Levels – $42,500, followed by $42,000.

Major Resistance Levels – $43,300, $43,400 and $44,200.