Bitcoin price started falling sharply after trading near $45,000. BTC is down over 8%, but bulls appear to be active above $40,000.
- Bitcoin is showing some bearish signs since the $44,699 high.
- The price is below $43,500 and the 100 hourly simple moving average.
- There was a break below a key bullish trendline with support near $43,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could attract strong buying interest near the $40,000 zone.
Bitcoin price falls sharply
Bitcoin price remained in a bullish zone after breaking the $40,000 resistance. BTC steadily climbed above the $42,000 and $43,000 levels. The price even rose to over $44,000.
However, it failed to test the $45,000 resistance. A high was formed at $44,699 and the price began a strong downward correction. There was a move below the $44,000 level. Additionally, there was a break below a key uptrend line with support near $43,500 on the hourly chart of the BTC/USD pair.
The pair fell below the 50% Fib retracement level of the upward move from the swing low of $39,398 to the high of $44,699. Bitcoin is currently trading below $43,500 and the 100 hourly simple moving average.
However, bulls are protecting the $40,000 support and the 76.4% Fib retracement level of the upward move from the swing low at $39,398 to the high at $44,699. The price is attempting a recovery wave and is facing resistance near the $42,400 level.
Source: BTCUSD on TradingView.com
The first major resistance is forming near $43,2000, above which the price could gain bullish momentum and rise towards $44,000. A close above the $44,000 resistance level could trigger a strong bullish move. The next key resistance could be at $44,200, above which BTC could rise towards the $45,000 level.
$40,000 is key for BTC
If Bitcoin fails to rise above the $43,200 resistance zone, another decline could occur. The immediate downside support is near the $41,200 level.
The next major support is around $40,500, below which the price could test the $40,000 zone. A break below $40,000 poses a risk of further downside. 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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