After hovering near $45,000, Bitcoin underwent a significant downturn, with a more than 8% decline. However, bullish activity is evident above the $40,000 mark.
Several bearish indicators have emerged since reaching the high of $44,699. The current price is below both $43,500 and the 100-hourly Simple Moving Average. Additionally, a crucial bullish trend line with support around $43,500 was breached on the BTC/USD hourly chart (data feed from Kraken).
Looking ahead, there is potential for robust buying interest to emerge in the $40,000 zone.
Bitcoin experiences a significant drop in its price.
After breaking the $40,000 resistance, Bitcoin maintained a bullish stance, steadily advancing beyond $42,000 and $43,000, even rallying above $44,000. Despite this, the cryptocurrency fell short of testing the $45,000 resistance, forming a peak around $44,699 before initiating a sharp downside correction.
The decline involved breaking the $44,000 level and breaching a significant bullish trend line with support near $43,500 on the BTC/USD pair’s hourly chart. Subsequently, the pair dropped below the 50% Fibonacci retracement level of the upward movement from the $39,398 swing low to the $44,699 high. Bitcoin is currently trading beneath $43,500 and the 100-hourly Simple Moving Average.
Despite these challenges, the bulls are actively defending the $40,000 support and the 76.4% Fibonacci retracement level of the upward journey from the $39,398 swing low to the $44,699 high. There is an ongoing attempt at a recovery wave, encountering resistance around the $42,400 level.
The initial significant resistance is taking shape around $43,200. If surpassed, there is potential for bullish momentum, propelling the price towards $44,000. A decisive breakthrough above the $44,000 barrier could initiate a robust upward trend. The subsequent crucial resistance might be observed around $44,200, and surpassing it could lead Bitcoin toward the $45,000 level.
Bitcoin’s pivotal level rests at $40,000.
Should Bitcoin struggle to surpass the $43,200 resistance area, a potential downtrend might ensue. Immediate downside support can be found near the $41,200 level.
The subsequent significant support rests around $40,500, and a breach could lead to a test of the $40,000 zone. If the price falls below $40,000, it poses a risk of further declines, potentially heading toward the $38,500 support in the short term.
Key technical indicators suggest a bearish momentum:
- Hourly MACD: The MACD is currently accelerating in the bearish zone.
- Hourly RSI (Relative Strength Index): The RSI for BTC/USD has dipped below the 30 level.
Major Support Levels:
- $41,200, followed by $40,000.
Major Resistance Levels:
- $42,400, $43,200, and $44,200.