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Bitcoin Price Analysis: BTC Needs to Take Profits, $40,000 Is Key

  • Bitcoin price started a downward correction from the $45,000 zone against the US Dollar.
  • The price is currently below $43,000 and the 55 simple moving average (4-hours).
  • There was a break below a key uptrend line with support near $43,500 on the 4-hour chart of the BTC/USD pair (data feed from Coinbase).
  • The pair could start a fresh increase if it stays above the $40,450 support zone.

Bitcoin price corrects below $43,000 against the US dollar. BTC could eye another rise if bulls remain active above the $40,000 zone.

Bitcoin price analysis

Bitcoin price extended its rise above the $40,000 level and recovered towards the $42,000 resistance zone. A high was formed around $45,000 before the price initiated a downward correction. There was a clear move below the $43,500 and $43,000 levels.

The bears managed to push the price towards the 50% Fib retracement level of the upward move from the swing low at $37,612 to the high at $45,000. Additionally, there was a break below a key uptrend line with support near $43,500 on the 4-hour chart of the BTC/USD pair.

It is now trading below $43,000 and the 55 simple moving average (4-hours). However, the bulls are now active near the $40,500 support. The immediate upside resistance is near the $42,000 level.

The next major resistance could be near the $43,000 zone and the 55 simple moving average (4-hours). A significant move above the $43,000 level could push the price towards $44,500, above which the price could rise towards the $45,000 level. Any further gains could push the price towards the $46,500 zone.

If there is no uptrend, the price could fall further below the $41,000 level. The first major support lies at $40,500 or the 61.8% Fibonacci retracement level of the upward move from the swing low of $37,612 to the high of $45,000.

The next key support is near the $39,350 level, below which the price could accelerate downwards. In the mentioned case, the price could fall towards the $38,500 mark. Further losses could push the price towards the $36,000 level.

Bitcoin price

A look at the chart shows that Bitcoin price is well below $43,000 and the 55 simple moving average (4-hours). Overall, the price could rise again if it stays above the $40,500 support zone.

Technical indicators

4-hour MACD – The MACD is now losing momentum in the bullish zone.

4-hour RSI (Relative Strength Index) – The RSI is now below the 50 level.

Key Support Levels – $40,500 and $39,350.

Key Resistance Levels – $42,000, $43,000 and $45,000.

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