Bitcoin Retraces to $42,710 Support as Buyers Continue to Build Strength on Market Surge

The Bitcoin (BTC) price is holding above $42,710 after rising to a high of $45,400. In the last 48 hours, Bitcoin bulls made impressive progress as buyers encountered resistance at the $45,400 high. After the rejection, the BTC price fell back to a low of $42,710 and continued consolidating above the current support.

The largest cryptocurrency fluctuates between the $42,710 and $45,400 levels. A break above resistance at $45,400 would catapult Bitcoin to a high of $49,000 or $51,000. In the meantime, BTC price is fluctuating above the $42,710 support, but if Bitcoin turns from the recent high and falls below the $42,710 support, the bears will try to push Bitcoin to the $39,000 breakout level. BTC/USD is trading at $43,930 at the time of writing.

Bitcoin indicator reading

The Relative Strength Index is at 61, which means that Bitcoin is in the uptrend zone and capable of further upward movement. The BTC price remains above the 21-day line and the 50-day moving averages line. This means that the market is trending higher. Bitcoin is above the 40% area of the stochastic on the daily chart. The bullish momentum is volatile as the BTC price fluctuates between $42,710 and $45,000.

Technical indicators:  

Major Resistance Levels - $65,000 and $70,000

Major Support Levels - $60,000 and $55,000

What is the next direction for BTC?

Since February 8, the BTC price has been moving in a narrow range after a decline. Buyers have not yet overcome the resistance at $45,400. Meanwhile, the price entered an uptrend on February 8. A retracement candlestick tested the 38.2% Fibonacci retracement level. The retracement suggests that BTC will rise to the 2.618 Fibonacci Extension level or $52,343.

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.