Bitcoin Price Holds Key Support, Can Bulls Overcome Hurdle?

Bitcoin's price dropped below key support levels, but is now attempting a fresh increase. It must clear $42,350 to enter a positive zone.

Bitcoin's price has once again taken a dive and retested the $40,000 support zone, causing concern among investors. The cryptocurrency is currently on the rise, but it will need to clear the $42,350 mark in order to move into a more positive zone.

After dropping below the $43,500 and $43,200 support levels, Bitcoin even fell under the $41,200 support before experiencing a rebound. The price hit a low of around $39,999 before beginning a fresh increase.

As the price climbed, it managed to surpass the 23.6% Fib retracement level from its previous downward move. Additionally, a bearish trend line with resistance near $41,300 was broken, indicating a potential upward trend.

However, Bitcoin is still trading below $43,600 and the 100 hourly Simple Moving Average, indicating potential resistance levels. The immediate resistance is near the $42,000 mark, with the first major resistance forming at $42,350.

A close above the $42,350 resistance could lead to a steady increase, with the next key resistance near $43,000. If Bitcoin manages to rise above this level, it could potentially reach $44,000 and even $45,000.

On the other hand, if Bitcoin fails to rise above the $42,350 resistance zone, it could experience another decline. Immediate support on the downside is near the $41,200 level, with the next major support at $40,550. If the price falls below $40,000, there is a risk of a sharp decline, potentially dropping to the $38,500 support level in the near term.

In terms of technical indicators, the MACD is currently gaining pace in the bearish zone, and the RSI for BTC/USD is below the 30 level, indicating potential downward movement. Overall, the cryptocurrency market is experiencing a period of uncertainty and volatility, with Bitcoin's price movements being closely monitored by investors and traders alike.

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