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Tuesday, November 29, 2022

Bitcoin Price Rally Pauses But Upsides Could Restart

Bitcoin started a strong upward move above $43,000 against the US Dollar. BTC spiked above $44,000 and currently correcting lower.

  • Bitcoin gained pace for a move above the $43,000 resistance zone.
  • 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 $43,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is correcting gains, but dips could be limited below the $43,200 level.

Bitcoin Price Extends Recovery

Bitcoin price gained pace after there was a close above the $42,000 resistance zone. BTC even climbed above the $43,200 resistance zone and a close above the 100 hourly simple moving average.

The price even spiked above the $44,000 level. A high is formed near $44,348 and the price is now correcting gains. It traded below the $44,000 support level. There was a break below the 23.6% Fib retracement level of the upward move from the $42,505 swing low to $44,348 high.

Besides, there is a major bullish trend line forming with support near $43,200 on the hourly chart of the BTC/USD pair. Bitcoin is now trading above $42,500 and the 100 hourly simple moving average.

Bitcoin Price

Source: BTCUSD on TradingView.com

On the upside, an initial resistance is near the $44,000 level. The next major resistance is near the $44,200 level and the recent high. Any more gains could pump the price towards the $45,000 level. The next major resistance is near the $45,500 level.

Fresh Drop in BTC?

If bitcoin fails to continue higher above $44,000, it could continue to move down. An immediate support on the downside is near the $43,400 zone. The 50% Fib retracement level of the upward move from the $42,505 swing low to $44,348 high is also near the $43,400 level.

The first major support is near $43,200 and the bullish trend line. A downside break below the trend line support could lead the price towards the $42,200 level and the 100 hourly SMA. Any more losses might push the price towards the $41,500 support zone in the coming sessions.

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 above the 50 level.

Major Support Levels – $43,400, followed by $43,200.

Major Resistance Levels – $44,000, $44,200 and $45,000.

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