TA: Bitcoin Reaches Key Juncture, Why Recovery Won’t Be Easy
January 18 2022 - 10:08PM
NEWSBTC
Bitcoin traded towards $41,200 before recovering against the US
Dollar. BTC must clear $42,800 to start a fresh increase in the
near term. Bitcoin extended decline and traded below the $42,000
support zone. The price is still trading below $43,000 and the 100
hourly simple moving average. There is a crucial bearish trend line
forming with resistance near $42,780 on the hourly chart of the
BTC/USD pair (data feed from Kraken). The pair could start a fresh
increase if there is a clear move above the $42,800 resistance.
Bitcoin Price Approaches Key Resistance Bitcoin price remained in a
negative zone below the $43,000 pivot level. BTC even broke the
$42,000 support level and settled below the 100 hourly simple
moving average. A low was formed near $41,288 and the price is now
correcting higher. There was a move above the $42,000 resistance
zone. The price climbed above the 23.6% Fib retracement level of
the key drop from the $43,800 swing high to $41,288 low. On the
upside, an initial resistance is near the $42,550 level. It is near
the 50% Fib retracement level of the key drop from the $43,800
swing high to $41,288 low. The main resistance is now forming near
the $42,800 level. There is also a crucial bearish trend line
forming with resistance near $42,780 on the hourly chart of the
BTC/USD pair. An upside break above the trend line resistance could
start a steady increase above $43,000. Source: BTCUSD on
TradingView.com The next key resistance is near the $43,500 level.
Any more gains may perhaps call for a test of the $44,000
resistance zone. The next major resistance is near the $44,800
level. Fresh Drop in BTC? If bitcoin fails to start a fresh
increase above $42,800, it could start a fresh decline. An
immediate support on the downside is near the $42,200 zone. The
first major support is seen near the $42,000 zone. A downside break
below the $42,000 support zone could push the price back towards
the $41,200 support zone. The next major support is near $40,500,
below which the bears might gain strength. Technical indicators:
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is above
the 50 level. Major Support Levels – $42,000, followed by $41,200.
Major Resistance Levels – $42,550, $42,800 and $43,500.
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