NEW DELHI (CoinChapter.com) — Bitcoin price is back above the 50-day SMA, showing a few bullish signs in February 2024. BTC/USD could gather bullish momentum if it clears the $43,650 resistance.
Bitcoin Price Eyes Key Upside Break
In January 2024, Bitcoin saw a downside correction from the $48,750 high. BTC declined below the $45,000 and $43,500 support levels to enter a short-term bearish zone. Finally, the bears even spiked below the $40,000 support zone.
A low was formed near $38,572, and the price recently started a recovery wave. There was a decent upward move above the $40,000 resistance. The price climbed above the downside correction’s 23.6% Fib retracement level from the $48,750 swing high to the $38,572 low.
The recent move pushed the Bitcoin price above the 50-day simple moving average (blue), which is encouraging. More importantly, an inverse head and shoulders pattern seems to be forming with breakout resistance at $43,650.
A major bearish trend line is forming with resistance at $43,650 on the daily chart. The trend line is close to the 50% Fib retracement level of the downside correction from the $48,750 swing high to the $38,572 low.
A daily close above the trend line resistance could validate the inverse head and shoulders pattern. Immediate resistance sits near the $44,850 level.
The next major target for the bulls could be $46,500, above which Bitcoin could accelerate higher toward the $48,750 level. Any more gains might open the doors for a test of the main $50,000 handle.
Another Drop In BTC?
The recent move could be a short-term correction wave if Bitcoin fails to clear the $43,650 resistance zone. In the stated case, the price might decline below the 50-day simple moving average (blue) to start another bearish wave.
Immediate support is near the $42,000 level. The first key support seems to be forming near the $40,800 level. The main support sits at $38,500. A daily close below the $38,500 level could start a medium-term downtrend. The next key support is near the $35,750 level. Any more losses might send the price toward the $30,000 region.
Bitcoin’s price shows a few positive signs above $42,000 and the 50-day simple moving average (blue). However, BTC/USD must clear the $43,650 resistance zone to start a fresh surge.
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