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Friday, February 16, 2024

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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.

Christian Robinson
Christian Robinson
I’m a regular contributor to Forbes, CoinDesk, and Bitcoin Magazine, among others. My work focuses on providing analysis of the latest trends in the crypto industry, as well as offering insights into investment opportunities. I have a strong track record of identifying emerging technologies and assets that can achieve significant growth. As such, I believe that I am uniquely positioned to help investors navigate the ever-changing landscape of cryptocurrency.

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