Bitcoin (BTC) Consolidates Beneath $45K; What Might Trigger Corrections

  • Bitcoin extended its uptrends closing towards the resistance barrier at $45K.
  • The asset trades beyond $44K and 100-Hr Simple Moving Average now.
  • The 1-hr chart shows a contracting triangle developing, with resistance at $44,450 (Kraken data).
  • The pair might correct lower if its moves beneath the support of $43K.

Bitcoin saw lucrative upswings to test the resistance at $45K. The leading digital coin consolidates the gains and might fall towards $43K in the short term.

Bitcoin Extends Rally

Bitcoin launched a massive surge past the $42K mark. The world’s leading crypto rallied past $43K and consolidated around $44K at this writing. Meanwhile, the coin saw another surge past $44.5K, trading near the resistance of $45K, where BTC encountered sellers. It’s now consolidating the gains and saw a slight drop beneath the $44.5K area.

Bitcoin trades beyond $44K and 100-Hr Simple Moving Average. Moreover, the currency hovers well past the 23.6% Fibonacci retracement zone of the surge from $37,030 to a swing peak of $44,955.

Furthermore, BTC/USD hourly chart shows a contracting triangle developing with the resistance of $44,450. The coin faces an obstacle of around $44.2K. The initial critical resistance stands at $44,450 and the triangle’s topside trend-line.

Bitcoin’s primary resistance locates at $45K. A decisive move past this resistance might see Bitcoin climbing higher. That way, BTC can explore the $45.5K value area.

BTC Dips Limited?

BTC’s failure to overpower the resistance zone at $44.5K might lead to a downside retracement. The nearest support will showcase at $43.8K and the triangle’s lower trend-line. The following massive support sits at $43K. Breaching this level might see Bitcoin dipping towards $41K. The area stands near the 50% Fibonacci retracement of the uptrend to $44,955 from $37,030.

Bitcoin hasn’t escaped the woods despite the latest upsurge. The token broke past the initial resistance at $43,349 on Tuesday. However, the next hurdle remains a challenge for Bitcoin. Bulls need to overcome the resistance at $45,044 for steady upsides. Failure to do that will translate to downtrends for the leading crypto.

BTC Technical Levels

  • Supports – $39,070, $34,938 and $32,374
  • Resistances – $45,766, $48,330, and $52,462
  • Pivot Point – $41,634.
By Edward Richardson
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