Bitcoin Struggles, Faces Critical $43.5K Resistance

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Recent trends in the cryptocurrency market have shown Bitcoin’s momentum waning, as the coin grapples with resistance under the $43,500 mark. The future seems uncertain for Bitcoin, which may face another downturn if it’s unable to surpass the critical 100 hourly Simple Moving Average (SMA).

The digital currency witnessed a significant drop from a strong resistance level at $49,000, descending below pivotal supports of $46,500 and $45,000—milestones that previously bolstered its short-term bullish sentiment. The decline was acute enough to breach the support zone of $42,500, albeit the descent was curtailed near a low at $41,476 as bullish investors attempted to halt the slide.

In its attempt to mitigate the losses, Bitcoin did recover marginally, climbing past the $42,000 mark. Notably, it touched upon the 23.6% Fibonacci retracement level of the recent pronounced decline from the high of $49,000 to the low of $41,476.

Currently, Bitcoin is positioned below the key threshold of $43,250 and the 100 hourly SMA, with noteworthy resistance manifesting near $43,050. This is evidenced by the formation of a declining channel on the hourly chart for the BTC/USD pair.

For Bitcoin to reverse its current downtrend, it would need to break through this resistance zone. Immediate resistance looms near the channel’s boundary at $43,000, followed closely by $43,250—the 100 hourly SMA. A decisive breakout above these levels could propel Bitcoin towards the overhead resistance of $44,450.

Beyond that, resistance is solidifying near $45,250, close to the 50% Fibonacci retracement level of the aforementioned drop. Should Bitcoin secure a position above this juncture, a robust rally could be triggered, potentially reaching the next major resistance at $47,000.

However, if Bitcoin fails to break through the resistance at $43,250, the possibility of a renewed decline is on the table. Immediate support is found near $42,120, while more substantial support hovers at $41,500. If the price were to close beneath this level, bearish momentum might intensify, potentially dragging Bitcoin down towards the $40,000 mark in short order.

As for technical indicators, the Hourly MACD is signaling a weakening of bearish momentum, and the Hourly RSI (Relative Strength Index) is stationed below the midline of 50.

Support levels to watch include $42,120 followed by the stronger support at $41,500. Conversely, resistance levels to be cognizant of are at $43,050, $43,250, and subsequently $44,450.

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