Bitcoin price plunged again, retesting the $40,000 support zone. BTC is rising, but needs to liquidate $42,350 to move into the positive zone.
- Bitcoin is attempting a fresh increase from the $40,000 support zone.
- The price is trading below $43,600 and the 100-hour simple moving average.
- On the hourly chart of the BTC/USD pair (data feed from Kraken), a breakout occurred above a bearish trend line connecting with resistance near $41,300.
- A break above the $42,350 resistance area could provide bullish momentum.
Bitcoin price remains supported
Bitcoin price fell significantly below the $43,500 and $43,200 support levels. BTC fell below the $41,200 support line before strength emerged. A low was made around $39,999 and the price is currently attempting a new rise.
The price crossed above the 23.6% Fib retracement level moving down from the $44,699 swing high to the $39,999 low. Moreover, a breakout occurred above a bearish trend line connecting with resistance near $41,300 on the hourly chart of the BTC/USD pair.
However, Bitcoin is still trading below $43,600 and the 100-hour simple moving average. Meanwhile, immediate resistance is close to the $42,000 level. The first major resistance is forming near $42,350. This is close to the 50% Fib retracement level of the downward move from the $44,699 swing high to the $39,999 low.
Source: TradingView.com BTCUSD
A break above the $42,350 resistance could begin a steady rise. The next major resistance could be near $43,000, above which BTC could rise towards the $44,000 level. A clear break above the $44,000 level could set the pace for the $45,000 test.
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If Bitcoin fails to rise above the $42,350 resistance zone, another decline could begin. Immediate support for the downside is near the $41,200 level.
The next major support is near $40,550, below which the price could test the $40,000 area. There is a risk of a sharp decline if it falls below $40,000. 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 30 level.
Key support levels – $41,200, then $40,000.
Key resistance levels – $42,400, $43,200 and $44,200.