Bitcoin Price Analysis: Price is likely to fall below $ 42,500
The upward trend of bitcoin was followed yesterday by crossing the resistance of $ 44,000 and $ 45,000. At the moment, however, the market is correcting for the jump of recent days, and it is likely that the price will continue to fall to $ 42,500.
To Report News Bitcoin, the upward trend in prices over the weekend was followed by the passage of Bitcoin above $ 42,000. Following this uptrend, buyers managed to overcome the resistance of $ 44,000 and $ 44,500, and while the high price of the 100-hour moving average (SMA) had stabilized, at some point the resistance was $ 45,000. It broke.
After the price reached its highest daily level of $ 45,500, the market began to decline. During the fall, support at the level of $ 44,000 and the uptrend line on the chart were initially lost. Support for the 50% Fibonacci retracement level of $ 43,300 also fell during the fall. In this analysis, Fibonacci levels are set based on the upward movement of the price from $ 4,140 to the peak of $ 45,500.
However, buyers were active on the 61.8% Fibonacci retracement level and supported the price. Bitcoin is currently above $ 43,500 and a simple 100-hour moving average, and if the market continues to rise, the closest resistance to the price will be at $ 44,000.
Also read: What is the difference between trading in the bull and bear market of digital currencies?
A crossover trend is also seen in the 1-hour Bitcoin / Dollar market, which has resisted in the $ 44,000 range. Crossing this resistance can be a spark to start a new upward movement in the bitcoin market.
On the other hand, if the buyers can not continue to overcome the resistance of $ 44,000, the bearish correction is likely to deepen. In this case, the closest price support will be at $ 42,800.
The $ 42,500 level and the simple 100-hour moving average act as the next support for the price, and the loss of support in this range can be accompanied by a fall in the price to $ 4,200.
The MACD is entering a downtrend and the Relative Strength Index (RSI) is below 50.
As mentioned, $ 42,800 and $ 42,500 are key Bitcoin supports, and $ 44,000, $ 44,450 and $ 45,000 also act as price resistance.