Once again, Bitcoin struggled to gain momentum above the $43,500 resistance threshold, leading to a new descent. The cryptocurrency is currently on a downward trajectory and may soon revisit the support levels at $40,000.
Bitcoin’s value is diminishing beneath the $42,000 support region.
It is trading below $42,000 and the 100-hourly Simple Moving Average.
On the hourly chart of the BTC/USD pair (data feed from Kraken), a significant bearish trend line is taking shape, with resistance around $41,800.
Potential robust buying support could emerge around the $40,600 and $40,000 levels.
Bitcoin’s value drops beneath the $42,000 mark.
Bitcoin made an effort to extend its gains beyond the $43,000 threshold, yet it faced resistance at $43,500, resulting in the formation of another rejection pattern.
After reaching a peak around $43,421, the price initiated a new decline, dipping below the $42,200 and $42,000 levels. Furthermore, it fell beneath the 50% Fibonacci retracement level of the upward movement from the $40,605 swing low to the $43,421 high.
Currently, Bitcoin is trading under $42,000 and the 100-hourly Simple Moving Average. Additionally, an important bearish trend line is taking shape, presenting resistance around $41,800 on the hourly chart of the BTC/USD pair.
Looking upward, the initial resistance lies around the $41,250 mark. The primary significant resistance is taking shape near $41,800, aligning with the trend line. A successful breach above the $41,800 resistance could initiate a gradual uptrend. Subsequently, the subsequent crucial resistance might emerge around $42,250, and surpassing this level could propel BTC towards the $42,800 range. A decisive breakthrough beyond $42,800 could pave the way for testing the $43,500 threshold.
Could Bitcoin Experience Further Declines?
If Bitcoin is unable to surpass the $41,800 resistance area, there is a potential for further downward movement. Immediate support on the downside is identified near the $40,600 level or the most recent swing low.
The subsequent significant support is situated around $40,000, approximately at the 1.236 Fibonacci extension level of the upward rally from the $40,605 swing low to the $43,421 high. If this level is breached, there is a possibility of the price testing the $39,500 zone. A move below $39,500 poses a risk of additional losses, potentially leading the price towards the $38,400 support in the short term.
Key technical indicators:
- Hourly MACD – The MACD is currently indicating bearish momentum.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD has dipped below the 20 level, signifying oversold conditions.
Major Support Levels – $40,600, followed by $40,000.
Major Resistance Levels – $41,250, $41,800, and $42,250.
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