Bitcoin price began to decline significantly below $44,000 following rumors of a spot ETF rejection. BTC is down more than 10%, but bulls are still protecting support at $40,000.
- Bitcoin fell significantly and even surged below the $40,000 level.
- The price is trading below $43,500 and the 100-hour simple moving average.
- On the hourly chart of the BTC/USD pair (data feed from Kraken), a break occurred below a key bullish trendline with support around $43,200.
- If the price closes above the $43,500 resistance zone, the pair could start a new rally.
Bitcoin price plunges more than 10%
Bitcoin price struggled to gain pace above the $46,000 resistance level. BTC saw strong selling interest and rumors of a spot ETF rejection spread through the market.
This triggered a bearish move and the price fell below the $44,000 level. On the hourly chart of the BTC/USD pair, a break occurred below the main bullish trendline with support around $43,200. The pair fell more than 10% and even surged below the $40,000 support.
A low was formed around $39,500 and the price began to recover. There was a move above the $41,500 and $42,000 levels. There was a wave above the 50% Fib retracement level moving downward from the $45,913 swing high to the $39,501 low.
Bitcoin is trading below $43,500 and the 100-hour simple moving average. On the other hand, immediate resistance is close to the $43,200 level. The first major resistance is the 61.8% Fib retracement level at $43,500 or a downward move from the $45,913 swing high to the $39,501 low.
Source: TradingView.com BTCUSD
The price could go higher once it breaks above the $43,500 level. The next major resistance level is $44,400. Additional gains above the $44,400 level could open the door for a move to the $45,000 level.
A new decline in BTC?
If Bitcoin fails to rise above the $43,500 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 $41,300. A break below $41,300 could see the price gain bearish momentum. If indicated, the price may decline towards the $40,500 support level in the near term.
Technical indicators:
Hourly MACD – MACD is now losing speed in bullish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $42,000, $41,300.
Key resistance levels – $43,200, $43,500 and $44,000.
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