Bitcoin price crashed again and retested the $40,000 support zone. BTC is rising but needs to clear the $42,350 level to enter a positive zone.
- Bitcoin is attempting a fresh rise from the $40,000 support zone.
- The price is below $43,600 and the 100 hourly simple moving average.
- There was a break above a connecting bearish trend line with resistance near $41,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could gain bullish momentum once it clears the $42,350 resistance zone.
Bitcoin price remains supported
Bitcoin price fell sharply below the $43,500 and $43,200 support levels. BTC even fell below the $41,200 support before bulls emerged. A low was formed at $39,999 and the price is now attempting a fresh rise.
The price climbed above the 23.6% Fib retracement level of the downward move from the swing high $44,699 to low $39,999. Additionally, there was a break above a connecting bearish trend line with resistance near $41,300 on the hourly chart of the BTC/USD pair.
However, Bitcoin is still trading below $43,600 and the 100 hourly simple moving average. On the other side, the immediate resistance is near the $42,000 level. The first major resistance is forming at $42,350. It is near the 50% Fib retracement level of the downward move from the swing high at $44,699 to the low at $39,999.
Source: BTCUSD on TradingView.com
A close above the resistance at $42,350 could trigger a steady increase. The next key resistance could be around $43,000, above which BTC could rise towards the $44,000 level. A significant rise above the $44,000 level could lay the foundation for a test of $45,000.
Is the current buying opportunity for BTC declining?
If Bitcoin fails to rise above the $42,350 resistance zone, another decline could occur. The immediate downside support is near the $41,200 level.
The next major support is at $40,550, below which the price could test the $40,000 zone. If it breaks below $40,000, there is a risk of a sharp decline. In the mentioned case, the price could fall towards the $38,500 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 30 level.
Key support levels – $41,200, followed by $40,000.
Major resistance levels – $42,400, $43,200 and $44,200.
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