Bitcoin price extended its decline below the $41,450 support level. BTC is showing bearish signs and may struggle to stay above the $40,000 support area.
- Bitcoin price is gaining bearish momentum below the $42,500 area.
- 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 $42,100.
- The pair is now at risk of further downside towards the $40,000 support.
Bitcoin price rise bearish momentum
Bitcoin price failed to begin a recovery above the $43,250 resistance zone. BTC formed a short-term high and began another decline below the $42,120 support area.
The decline could push the price below the $41,450 level. A new weekly low was formed near $40,625 and the price is currently consolidating losses. It is trading near the 23.6% Fib retracement level of the recent decline from the $43,569 swing high to the $40,625 low.
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 $42,100.
Meanwhile, the price is finding resistance near $41,675. The next major resistance is near the $42,100 zone and trend line. It is also close to 50% of the Fib retracement level of the recent decline from the $43,569 swing high to the $40,625 low.
Source: TradingView.com BTCUSD
A clear break above the $42,100 resistance may lead the price to move towards the $43,250 resistance. The next resistance is now forming near the $43,500 level. Prices could rise further above the $43,500 level. The next major resistance level is $44,450.
Will there be more losses in BTC?
If Bitcoin fails to rise above the $42,100 resistance zone, it may continue to fall. Immediate support for the downside is near the $40,750 level.
The next major support is $40,500. The price could gain bearish momentum if it closes below $40,500. If indicated, the price may fall towards the $40,000 support level 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 50 level.
Key support levels – $40,750, then $40,000.
Key resistance levels – $41,675, $42,100 and $43,250.
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