Bitcoin price began a new decline below the $41,250 support area. BTC is showing signs of weakness and could fall significantly below the $40,000 support area.
- Bitcoin price is gaining bearish momentum below the $41,500 area.
- The price is trading below $41,500 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 $41,320.
- The pair is currently at risk of further downside if it breaks the $40,000 support zone.
Bitcoin price resumes downward trend
Bitcoin price has struggled to stay above the $42,200 support area. However, BTC failed to clear many hurdles and started a new downtrend below the $42,000 level.
It has moved below the $41,500 and $41,250 support levels. The price even surged below the $40,500 level. A low was formed near $40,369 and the price is currently consolidating losses. It is currently trading near the 23.6% Fib retracement level, down from the $42,260 swing high to the $40,369 low.
Bitcoin is currently trading below $41,500 and the 100-hour simple moving average. Immediate resistance is near the $41,000 level. The first major resistance is near the $41,250 level. The hourly chart of the BTC/USD pair also has a major bearish trendline forming with resistance near $41,320.
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 $40,369 low. A clear break above the $41,320 resistance may move the price towards the $42,000 resistance. The next resistance is now forming near the $42,200 level. The price could rise further above the $42,200 level. The next major resistance level is $43,250.
Will there be more losses in BTC?
If Bitcoin fails to rise above the $42,200 resistance zone, it may continue to fall. Immediate support for the downside is near the $40,500 level.
The next major support is $40,000. The price could gain bearish momentum if it closes 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 50 level.
Key support levels – $40,500, then $40,000.
Key resistance levels – $41,500, $42,000 and $42,200.
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