Bitcoin price once again failed to gain momentum above the $43,500 resistance level. BTC started a fresh decline and could soon reach the $40,000 support again.
- Bitcoin moves deeper below the $42,000 support zone.
- The price is below $42,000 and the 100 hourly simple moving average.
- A key bearish trend line is forming with resistance near $41,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could attract strong buying interest near the $40,600 and $40,000 levels.
Bitcoin price falls below $42,000
Bitcoin price attempted further gains above the $43,000 level. However, BTC failed to overcome the resistance at $43,500 and formed another rejection pattern.
A high was formed at $43,421 and the price started falling again. There was a move below the $42,200 and $42,000 levels. The price fell below the 50% Fib retracement level of the upward move from the swing low $40,605 to high $43,421.
Bitcoin is currently trading below $42,000 and the 100 hourly simple moving average. A key bearish trend line is also forming with resistance near $41,800 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
On the other side, the immediate resistance is near the $41,250 level. The first major resistance is forming at $41,800 and the trend line. A close above the $41,800 resistance level could trigger a steady increase. The next key resistance could be at $42,250, above which BTC could rally towards the $42,800 level. A significant rise above the $42,800 level could lay the foundation for a test of $43,500.
More losses on BTC?
If Bitcoin fails to rise above the $41,800 resistance zone, the downtrend could continue. The immediate downside support is near the $40,600 level or the recent swing low.
The next major support is around $40,000. It is close to the 1.236 Fib extension level of the upward move from the swing low of $40,605 to the high of $43,421, below which the price could test the $39,500 zone. A decline below $39,500 risks further losses. In the mentioned case, the price could decline towards the $38,400 support in the short term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 20 level.
Main support levels – $40,600, followed by $40,000.
Major resistance levels – $41,250, $41,800 and $42,250.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.