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Bitcoin Price Eyes Fresh Rally Unless This Support Gives Way

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Aayush Jindal

Key Highlights

  • Bitcoin price corrected lower and tested the $41,800 support.
  • BTC is trading above a key bullish trend line with support at $42,400 on the 4-hour chart.
  • The price could start a strong increase if it clears the $43,450 and $44,000 resistance levels.
  • Ethereum is aiming for a fresh increase above the $2,440 resistance.

Bitcoin Price Technical Analysis

Bitcoin price found support near the $41,800 zone. BTC formed a base above $42,000 and is currently attempting a fresh increase.

Looking at the 4-hour chart, the price is trading above a key bullish trend line with support at $42,400. The price is also holding gains and positioned well above the 100 simple moving average (red, 4 hours).

The bulls seem to be active, but they are facing many hurdles. Immediate resistance is near the $43,450 level. The next resistance is near $44,000. A successful close above the $44,000 level might start a strong increase.

In the stated case, the price may perhaps rise toward the $45,000 level. Any more gains might send Bitcoin toward the $46,200 level in the near term.

If not, the price might start another decline. Immediate support is near the trend line at $42,400. The next major support is $41,800. Any more losses might send the price toward the 50% Fib retracement level of the upward move from the $38,502 swing low to the $43,853 high.

The next key support is near the $40,000 level, below which there is a risk of a drop toward the $38,500 level in the coming days.

Economic Releases

  • US Goods and Services Trade Balance for Dec 2023 - Forecast $-62.2B, versus $-63.2B previous.
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