Bitcoin price again failed to break above the $43,500 resistance level. BTC has started a new decline and may soon revisit the $40,000 support.
- Bitcoin is falling below the $42,000 support zone.
- The price is trading below $42,000 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 $41,800.
- The pair may see strong buying interest near the $40,600 and $40,000 levels.
Bitcoin price falls below $42,000
Bitcoin price attempted to rise further above the $43,000 level. However, BTC failed to clear the $43,500 resistance and formed another rejection pattern.
A high was made near $43,421 and the price began a new decline. It moved below the $42,200 and $42,000 levels. The price fell below the 50% Fib retracement level, rising from the $40,605 swing low to the $43,421 high.
Bitcoin is currently trading below $42,000 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 $41,800.
Source: TradingView.com BTCUSD
On the other hand, immediate resistance is near the $41,250 level. The first major resistance is forming near $41,800 and the trend line. A break above the $41,800 resistance could begin a steady rise. The next major resistance could be near $42,250, above which BTC could rise towards the $42,800 level. A clear break above the $42,800 level could set the pace for the $43,500 test.
Will there be more losses in BTC?
If Bitcoin fails to rise above the $41,800 resistance zone, it may continue to fall. Immediate support for the downside lies near the $40,600 level or the last swing low.
The next major support is near $40,000. It is close to the 1.236 Fib extension level, rising from the $40,605 swing low to the $43,421 high. Below that, the price could test the $39,500 area. A drop below $39,500 risks further losses. If stated, the price may fall towards the $38,400 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 20 level.
Key support levels – $40,600, then $40,000.
Key resistance levels – $41,250, $41,800 and $42,250.
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