Bitcoin price extended its decline below the $40,000 support zone. BTC is consolidating losses and risks further downside below $38,500.
- Bitcoin price is gaining bearish momentum below the $40,500 area.
- The price is trading below $40,500 and the 100-hour simple moving average.
- The hourly chart of the BTC/USD pair (data feed from Kraken) shows a bearish trend line tying with resistance near $40,850.
- The pair may correct above $40,000, but the bears may remain active near $40,500.
Bitcoin price took a hit.
Bitcoin price remained bearish below the $42,000 support. BTC bears gained strength and were able to push the price below the $40,000 support area.
A new weekly low was formed near $39,451 and the price is now consolidating losses. It is slowly recovering beyond the $39,800 level. It is approaching the 23.6% Fib retracement level of the recent decline from the $42,260 swing high to the $39,451 low.
Bitcoin is currently trading below $40,500 and the 100-hour simple moving average. Immediate resistance is near the $40,150 level. The first major resistance is near the $40,850 level. On the hourly chart of the BTC/USD pair, there is also a bearish trend line connecting with resistance near $40,850.
Source: TradingView.com BTCUSD
The trend line is close to 50% of the Fib retracement level of the recent decline from the $42,260 swing high to the $39,451 low. A clear break above the $40,850 resistance may lead the price towards the $41,250 resistance. The next resistance is currently forming near $42,000. The price could go higher once it breaks above the $42,000 level. The next major resistance level is $43,000.
Are there more downsides to BTC?
If Bitcoin fails to rise above the $40,850 resistance zone, it may continue to fall. Immediate support for the downside is near the $39,650 level.
The next major support is at $39,500. The price could gain bearish momentum if it closes below $39,500. If indicated, the price may fall towards the $38,500 support in the near term.
Technical indicators:
Hourly MACD – MACD is currently losing pace in bearish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $39,500, then $38,500.
Key resistance levels – $40,500, $40,850 and $41,250.
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