Bitcoin price hit a high near the $49,000 resistance zone. BTC started a big decline and broke a number of key supports at $45,000 to enter short-term bearish territory.
- Bitcoin peaked near $49,000 and began a steady decline.
- The price is trading below $43,500 and the 100-hour simple moving average.
- The hourly chart of the BTC/USD pair (data feed from Kraken) shows a bearish trend line tying with resistance near $42,850.
- A break below the $41,500 support could start a new downtrend for the currency pair.
Bitcoin price took a big hit
Bitcoin price failed to test the $50,000 resistance zone. BTC peaked near the $49,000 level and began a major decline. There was a significant decline below the $48,000 and $46,500 support levels.
The decline even pushed the price below the $45,000 support zone. It fell more than 12% and tested the $41,500 support area. A low was formed near $41,476 and the price began to recover. There was a slight increase above the $42,000 resistance zone.
However, Bitcoin is still trading below $43,500 and the 100-hour simple moving average. On the other hand, immediate resistance is close to the $42,800 level.
On the hourly chart of the BTC/USD pair, there is also a bearish trend line connecting with resistance near $42,850. The first major resistance is the 23.6% Fib retracement level at $43,250 or a downward move from the $49,000 swing high to the $41,476 low.
Source: TradingView.com BTCUSD
A clear break above the $43,250 resistance may lead the price to move towards the $44,000 resistance. The next resistance is now forming near the $45,200 level. This is close to the 50% Fib retracement level of the downward move from the $49,000 swing high to the $41,476 low. A move above the $45,300 level could initiate a strong rally and push the price higher. The next major resistance level is $47,000.
Will there be more losses in BTC?
If Bitcoin fails to rise above the $43,250 resistance zone, it could begin a new downtrend. Immediate support for the downside is near the $42,120 level.
The next major support is $41,500. A break below $41,500 could see the price gain bearish momentum. If indicated, the price may fall towards the $40,000 support level in the near term.
Technical indicators:
Hourly MACD – MACD is now losing speed in bearish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $42,120, then $41,500.
Key resistance levels – $42,800, $43,250 and $44,000.
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