Bitcoin Price Signals Recovery But The Bears Are Not Out of Woods Yet

2024-01-16 19:09:34

Bitcoin price is still struggling below the $43,500 resistance zone. BTC could start a recovery wave if there is a clear move above the $44,000 resistance zone.

Bitcoin price started a consolidation phase from the $41,500 zone.
The price is trading above $42,500 and the 100 hourly Simple moving average.
There is a key rising channel forming with resistance near $44,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a decent recovery wave if there is a move above the $44,000 resistance zone.

Bitcoin Price Faces Hurdles

Bitcoin price found support near the $41,500 zone and recently started a consolidation phase. BTC was able to recover a few points above the $42,000 and $42,200 levels.

The price even spiked above the 23.6% Fib retracement level of the main decline from the $49,000 swing high to the $41,475 low. There is also a key rising channel forming with resistance near $44,000 on the hourly chart of the BTC/USD pair.

Bitcoin is now trading above $42,500 and the 100 hourly Simple moving average. If the bulls remain in action, the price might recover above the $43,250 resistance. The first major resistance is $44,000 or the channel trend line.

Source: BTCUSD on TradingView.com

A clear move above the $44,000 resistance could send the price toward the $44,450 resistance. The next resistance is now forming near the $45,250 level. It is near the 50% Fib retracement level of the main decline from the $49,000 swing high to the $41,475 low. A close above the $45,250 level could push the price further higher. The next major resistance sits at $47,000.

Another Decline In BTC?

If Bitcoin fails to rise above the $44,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $42,800 level or the 100 hourly Simple moving average.

The next major support is $42,120. If there is a close below $42,120, the price could gain bearish momentum. In the stated case, the price could drop toward the $41,500 support in the near term.

Technical indicators:

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

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

Major Support Levels – $42,800, followed by $42,120.

Major Resistance Levels – $43,250, $44,000, and $44,450.

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