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January 17, 2022
Analysis

Bitcoin Bounces To $42K, Why BTC Could Recover To $43.5K

Bitcoin began a pointy restoration wave from $39,700 in opposition to the US Dollar. BTC is rising and the subsequent main cease for the bulls may be $43,500.

  • Bitcoin spiked in the direction of the $39,600 degree, the place the bulls took a stand.
  • The price is buying and selling above $42,000 and the 100 hourly easy transferring common.
  • There was a break above a key bearish development line with resistance close to $41,800 on the hourly chart of the BTC/USD pair (knowledge feed from Kraken).
  • The pair may proceed to get better and check the $43,500 resistance zone within the close to time period.

Bitcoin Price Recovers Sharply

Bitcoin price prolonged decline beneath the $40,500 assist degree. BTC even spiked beneath the $40,000 degree and traded as little as $39,659.

Recently, there was a pointy restoration wave above the $40,000 degree. The price climbed larger above the $40,500 and $41,200 resistance ranges. The bulls even pushed the price above the 50% Fib retracement degree of the latest decline from the $42,739 swing excessive to $39,659 low.

Besides, there was a break above a key bearish development line with resistance close to $41,800 on the hourly chart of the BTC/USD pair. Bitcoin is now buying and selling above $42,000 and the 100 hourly easy transferring common.

Bitcoin Price

Source: BTCUSD on TradingView.com

On the upside, the primary main resistance is close to the $42,750 degree. The subsequent main resistance is close to the $43,500 degree. It is close to the 1.236 Fib extension degree of the latest decline from the $42,739 swing excessive to $39,659 low. Any extra good points might pump the price in the direction of the $44,500 degree. The subsequent main resistance is close to the $45,500 degree, the place the bears may emerge.

Fresh Decline in BTC?

If bitcoin fails to get better above $43,500, it might begin a contemporary decline. An speedy assist on the draw back is close to the $41,800 zone and the 100 hourly SMA.

The first main assist is close to $41,500 and the damaged development line. A draw back break beneath the development line assist may lead the price in the direction of the $41,000 degree. Any extra losses may push the price in the direction of the $40,000 assist zone within the coming classes.

Technical indicators:

Hourly MACD – The MACD is now gaining tempo within the bullish zone.

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

Major Support Levels – $41,500, adopted by $40,500.

Major Resistance Levels – $42,750, $43,000 and $43,500.

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