Bitcoin price struggled to initiate a new rally above the $42,300 resistance zone. BTC is declining and currently under $40,000 and in danger of further downside.
- Bitcoin failed to start a new rally above the $42,000 resistance zone.
- The price is trading below $42,500 and the 100-hour simple moving average.
- The hourly chart of the BTC/USD pair (data feed from Kraken) shows a major bearish trendline forming with resistance near $41,250.
- If the price closes below the $40,000 support, the pair could extend its losses.
Bitcoin price turns red
Bitcoin price started a new rise above the $40,000 support zone. BTC broke above the $41,500 resistance zone but failed to continue its advance.
The price failed to show strength above the $42,250 and $42,300 resistance levels. A high was made near $42,300 and the price began a new decline. It fell below the $42,000 and $41,500 levels. A low was formed near $40,606 and the price is currently consolidating losses.
Bitcoin is also trading below $42,500 and the 100-hour simple moving average. On the other hand, immediate resistance is close to the $41,200 level. Moreover, on the hourly chart of the BTC/USD pair, there is a major bearish trend line forming with resistance near $41,250.
The first major resistance is forming near $41,450. This is close to the 50% Fib retracement level of the downward move from the $42,300 swing high to the $40,606 low.
Source: TradingView.com BTCUSD
The next major resistance could be the 76.4% Fib retracement level, moving down from the $42,300 swing high to the $40,606 swing low to $41,900. A break above the $41,900 resistance could begin a steady rise. The next major resistance could be near $42,300, above which BTC could rise towards the $43,000 level. A clear break above the $43,000 level could set the pace for the $44,000 test.
Will there be more losses in BTC?
If Bitcoin fails to rise above the $41,250 resistance zone, another decline could begin. Immediate support for the downside is near the $40,600 level.
The next major support is near $40,000, below which the price could test the $39,500 area. A drop below $39,500 risks further losses. If indicated, the price may fall towards the $38,500 support in the near term.
Technical indicators:
Hourly MACD – MACD is now picking up speed in bearish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $40,600, then $40,000.
Key resistance levels – $41,250, $41,900 and $42,300.
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