Bitcoin Price Begins Corrective Fall, Can Bulls Protect Losses

Bitcoin continues to rise above $44,000 against the US dollar. BTC is correcting losses, but it is likely to find support near the $42,000 support area.

  • Bitcoin climbed further above $44,000 before facing sellers.
  • The price is near $42,750 and the 100 hourly simple moving average.
  • There was a break above a key bullish trend line with support near $43,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is correcting gains, but losses are likely to be limited below $42,000.

Bitcoin price corrects gains

Bitcoin price extends gains above $43,200 resistance zone. BTC even surged above $44,000 twice before the bears came out.

A high was formed near $44,420 and the price is now heading lower. The move from the $39,660 swing low to $44,420 high fell below the 23.6% Fib retracement level of the key gain. Furthermore, there was a break below a key bullish trend line with support near $43,250 on the hourly chart of the BTC/USD pair.

Bitcoin price is now near $42,750, 100 hourly simple moving average. On the upside, initial resistance is near $43,000.

Source: BTCUSD on TradingView.com

The next major resistance is near $43,200. A clear break above $43,200 could push the price towards the $44,000 resistance. Any more gains may require a test of the $44,400 resistance area. The next major resistance is near $45,500, where bears are likely.

BTC to lose more?

If Bitcoin fails to start a fresh rise above $43,200, it could continue to decline. Immediate support on the downside is near $42,500. The first major support is near $42,000.

The 50% Fib retracement level of the key rally from the $39,660 swing low to $44,420 high is also near the $42,000 level. A break below the $42,000 support area could lead the price towards the $41,500 level. Any more losses could push the price towards the $40,500 support area over the next few sessions.

Technical indicators:

Hourly MACD – The MACD is slowly losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major support levels – $42,500, then $42,000.

Major resistance levels – $43,200, $44,000 and $44,400.

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