Bitcoin’s price rally has pushed beyond the crucial $42,000 resistance, but a correction is underway, potentially testing the support zone around $40,800. The surge propelled Bitcoin above key levels, including $41,200 and $42,000, while maintaining its position above the 100 hourly Simple Moving Average. On the hourly chart for the BTC/USD pair from Kraken, a significant bullish trend line is taking shape, indicating support in the vicinity of $40,880. There’s a possibility of a corrective move towards $40,800 before a potential new uptrend begins.
Bitcoin experiences a surge of more than 10% in its price.
Bitcoin’s price initiated a robust uptrend, surpassing the critical $38,500 resistance area. Over the past few sessions, BTC exhibited a remarkable gain of more than 10% and overcame several obstacles around the $40,000 mark.
Notably, it breached the $41,200 resistance and surged beyond the $42,000 zone, establishing a new multi-month high around $42,415. Presently, a corrective phase is unfolding, marked by a dip below the $42,000 level. The current testing ground includes the 23.6% Fibonacci retracement level, calculated from the upward movement between the $39,360 swing low and the $42,415 high.
Bitcoin maintains its position above $41,200 and the 100-hourly Simple Moving Average. Additionally, an important bullish trend line is taking shape, providing support around $40,880 on the BTC/USD pair’s hourly chart. This trend line aligns closely with the 50% Fibonacci retracement level from the aforementioned upward swing, reinforcing its significance.
Looking ahead, immediate resistance is anticipated near the $42,200 level, with a primary hurdle forming around $42,500. Surpassing this level could propel the price towards the $43,200 mark.
![](https://sollcrypto.com/wp-content/uploads/2023/12/Screen-Shot-2023-12-05-at-7.43.38-AM.png)
If the price manages to secure a breakthrough beyond the $43,200 resistance, there is potential for further upward momentum. The subsequent significant resistance is likely to emerge around $44,000, and a successful breach beyond this level could pave the way for Bitcoin to ascend towards the $45,000 mark.
Is there a restriction on the extent of downward movements in BTC?
Should Bitcoin fail to surpass the resistance at $42,200, a potential downward correction may ensue. Immediate support in such a scenario is anticipated around the $41,200 level.
Subsequently, a more substantial support level lies near $40,800, aligned with the existing trend line. If the price descends below $40,800, there is a heightened risk of further declines, potentially leading to a near-term drop toward the $40,000 support level.
Current technical indicators reveal that the hourly MACD is gradually losing momentum within the bullish zone, while the hourly RSI (Relative Strength Index) for BTC/USD is positioned above the 50 level.
Key Levels:
- Primary Support Levels: $41,200, followed by $40,800.
- Primary Resistance Levels: $42,200, $42,500, and $43,200.