Bitcoin Prints Bullish Pattern, Why Close Above $44K Is Critical

Bitcoin price started a decent increase above the $42,000 level against the US Dollar. BTC is now eyeing a key upside break above the $44,000 resistance zone.

• Bitcoin started a recovery wave above the $42,000 and $43,000 resistance levels.
• The price is still trading below $44,000 and the 100 hourly simple moving average.
• There was a break above a major bearish trend line with resistance near $42,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could accelerate higher if there is a clear break above $44,000.

Bitcoin Price Starts Fresh Recovery

Bitcoin price remained well bid above the $42,000 level. BTC formed a support base and started a decent increase above the $42,500 level.

There was a break above a major bearish trend line with resistance near $42,500 on the hourly chart of the BTC/USD pair. The pair climbed higher above the $43,000 and $43,500 resistance levels. It even tested the $44,000 level.

However, the bulls are struggling to gain strength above $44,000. Bitcoin is still trading below $44,000 and the 100 hourly simple moving average. A high is formed near $44,024 and the price is now consolidating gains.

It even tested the 23.6% Fib retracement level of the recent increase from the $39,579 swing low to $44,024 high. On the upside, an immediate resistance is near the $44,000 level. The first major resistance is near the $44,200 level and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

A clear break above the $44,000 and $44,200 levels could start a strong increase. The next major resistance is near the $45,000 zone, above which the price could rise towards the $47,000 resistance.

Dips Limited In BTC?

If bitcoin fails to clear the $44,000 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $43,000 level.

The next major support is near the $42,000 zone. The 50% Fib retracement level of the recent increase from the $39,579 swing low to $44,024 high is also near the $42,000 zone. A downside break below the $42,000 zone could start a fresh decline. In the stated case, the price could even revisit the $40,000 level in the near term.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bullish zone.

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

Major Support Levels – $43,000, followed by $42,000.

Major Resistance Levels – $44,000, $44,200 and $45,000.