THE DAILY ENCRYPT

October 4, 2022

TA: Bitcoin Revisits Breakout Zone, Can Bulls Make It?

Photo by Shubham Dhage

Bitcoin started a fresh increase above the $42,500 resistance against the US Dollar. BTC may soon attempt an upside break above the $43,500 resistance zone.

Bitcoin remained supported near $42,000 and started a fresh increase.
The price is trading above $42,500 and the 100 hourly simple moving average.
There is a major bullish trend line forming with support near $42,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could accelerate higher if there is a clear move above the $43,300 resistance zone.

Bitcoin Price Eyes Upside Break

Bitcoin price found support near the $42,000 zone after a downside correction. BTC formed a base and started a fresh increase above the $42,500 resistance zone.

There was a clear move above the $42,800 level and the price settled above the 100 hourly simple moving average. The price even spike above the $43,000 level and formed a high near $43,288. It is now consolidating near the $43,000 level.

There was a move below the 23.6% Fib retracement level of the recent wave from the $41,811 swing low to $43,288 high. Besides, there is a major bullish trend line forming with support near $42,300 on the hourly chart of the BTC/USD pair.

On the upside, the price is facing resistance near the $43,300 level. The next major resistance could be near the $43,500 zone. A successful break and close above the $43,500 level might start another steady increase.

Source: BTCUSD on TradingView.com

In the stated case, the price might rise towards the $44,200 level. Any more gains could send the price towards the $45,000 level in the near term.

Dips Limited in BTC?

If bitcoin fails to clear the $43,500 resistance zone, it could correct further lower. An immediate support on the downside is near the $42,500 zone.

The next major support is seen near the trend line and $42,300. It is near the 61.8% Fib retracement level of the recent wave from the $41,811 swing low to $43,288 high. The main support is still near the $42,000 zone. A downside break below the $42,000 support zone could start a drop towards the $40,500 level.

Technical indicators:

Hourly MACD – The MACD is now 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 – $42,500, followed by $42,000.

Major Resistance Levels – $43,300, $43,400 and $44,200.

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© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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