Bitcoin price extended its decline below the $42,650 range. BTC is showing some signs of weakness and may extend its downtrend towards $40,000 support.
- Bitcoin appears to be declining below the $43,500 level.
- The price is trading below $43,000 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 $43,200.
- The pair may continue to decline towards the $40,500 and $40,000 support levels.
Bitcoin price falls further
Bitcoin price struggled to initiate a new rally above the $43,500 and $43,650 resistance levels. BTC formed a short-term high and began a new decline below the $43,000 level.
There was a clear movement below the $42,500 and $42,300 levels. The price also surged below the $42,000 level. A low was made near $41,637 and the price is currently attempting a new rise. There was a move above the $42,000 level.
Bitcoin price broke above the 23.6% Fib retracement level moving down from the $44,430 swing high to the $41,637 low. It is currently trading below $43,000 and the 100-hour simple moving average. The hourly chart of the BTC/USD pair also has a major bearish trendline forming with resistance near $43,200.
On the other hand, immediate resistance is close to the $43,000 level. This is close to the 50% Fib retracement level of the downward move from the $44,430 swing high to the $41,637 low. The first major resistance is forming near the trendline at $43,200.
Source: TradingView.com BTCUSD
A break above the $43,200 resistance could initiate a significant rally towards the $44,000 level. The next major resistance could be near $44,300, above which BTC could rise towards the $45,000 level. If more profits are made, the price could rise to $46,500.
Will there be more losses in BTC?
If Bitcoin fails to rise above the $43,000 resistance zone, it could begin a new downtrend. Immediate support for the downside is near the $42,000 level.
The next major support is near $41,620. A drop below $41,620 risks further losses. 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 – $42,000, then $41,620.
Key resistance levels – $43,000, $43,200 and $44,300.
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