Bitcoin price is struggling below the $43,500 resistance zone. If BTC stays below the 100-hour SMA, another decline could begin.
- Bitcoin price began to decline significantly from the $49,000 resistance zone.
- The price is trading below $43,250 and the 100-hour simple moving average.
- The hourly chart of the BTC/USD pair (data feed from Kraken) shows a major downward channel forming with resistance near $43,050.
- A stay below the $43,250 resistance could start a new downtrend.
Bitcoin price turns red
Bitcoin price began to decline significantly from the $49,000 resistance zone. BTC traded below the $46,500 and $45,000 support levels to enter near-term bearish territory.
The bears even pushed the price below the $42,500 support zone before the uptrend took hold. A low was formed near $41,476 and the price is currently consolidating losses. It recovered a few points above the $42,000 level. The price tested the 23.6% Fib retracement level of the major decline from the $49,000 swing high to the $41,476 low.
Bitcoin is currently trading below $43,250 and the 100-hour simple moving average. The hourly chart of the BTC/USD pair also has a major downward channel with resistance forming near $43,050.
On the positive side, immediate resistance is near the $43,000 level and channel area. The first major resistance is $43,250 or the 100-hour simple moving average. A clear break above the $43,250 resistance may lead the price to move towards the $44,450 resistance.
Source: TradingView.com BTCUSD
The next resistance is now forming near the $45,250 level. This is close to the 50% Fib retracement level of the key decline from the $49,000 swing high to the $41,476 low. A move above the $45,250 level could initiate a strong rally and push the price higher. The next major resistance level is $47,000.
Will there be more losses in BTC?
If Bitcoin fails to rise above the $43,250 resistance zone, it could begin a new downtrend. Immediate support for the downside is near the $42,120 level.
The next major support is $41,500. The price could gain bearish momentum if it closes below $41,500. If indicated, the price may fall towards the $40,000 support level in the near term.
Technical indicators:
Hourly MACD – MACD is now losing speed in bearish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now below the 50 level.
Key support levels – $42,120, then $41,500.
Key resistance levels – $43,050, $43,250 and $44,450.
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