Bitcoin Consolidating Below USD 45K, Which Could Cause a Correction
Bitcoin spiked to test the $45,000 resistance against the US dollar. BTC is consolidating gains and could correct to $43,000 in the near term.
Bitcoin extended its gains and traded close to the $45,000 resistance zone. The price is trading above $44,000 and the 100 hourly simple moving average. A key contracting triangle is forming with resistance near $44,450 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could correct lower if it moves below the $43,000 support zone.
Bitcoin Price Extends Rally
Bitcoin price started a big surge above the $42,000 level. BTC was able to stay above the $43,000 level and consolidate near $44,000.
Finally, there was another rise and the price climbed above $44,500. The traded price closed the $45,000 resistance where it faced sellers. It is now consolidating gains and there was a small drop below the $44,500 level.
The price is now trading above $44,000 and the 100 hourly simple moving average. It is also well above the 23.6% Fib retracement level from the upward move from the $37,030 swing low to $44,955 high.
An important contracting triangle is also forming with resistance near USD 44,450 on the hourly chart of the BTC/USD pair. Bitcoin is now facing resistance and is near the USD 44,200 level. The first major resistance is near the $44,450 level and the top trendline of the triangle.
Source: BTCUSD on TradingView.com
The main resistance is now near the USD 45,000 level. A clear move above the $45,000 resistance could send the price further up. In the mentioned case, it could even attempt a clear move above $45,500.
Dips limited in BTC?
If bitcoin fails to clear the $44,500 resistance zone, it could trigger a downside correction. An immediate support on the downside is near the $43,800 zone and the triangular lower trendline.
The next major support is seen near the USD 43,000 level. If there is a downside breach below the USD 43,000 support, the price could drop to USD 41,000. It is near the 50% Fib retracement level of the upward move from the $37,030 swing low to $44,955 high.
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still correcting from the overbought zone.
Key support levels – $43,800, followed by $43,000.
Major resistance levels – $44,200, $44,450 and $45,000.