The Bitcoin price has further decreased, dipping below the $42,650 threshold, and is displaying bearish indicators, suggesting a potential extension of its decline towards the $40,000 support.
Bitcoin appears to be adhering to a bearish trajectory beneath the $43,500 mark. The current price is below $43,000 and the 100-hourly Simple Moving Average. Additionally, an important bearish trend line is taking shape, indicating resistance around $43,200 on the hourly chart of the BTC/USD pair (data sourced from Kraken). This trend may lead the pair to continue its descent towards the $40,500 and $40,000 support levels.
Bitcoin’s value experiences a deeper decline.
Bitcoin struggled to initiate a fresh uptrend above the resistance levels of $43,500 and $43,650, resulting in the formation of a short-term peak. Subsequently, BTC entered a renewed downtrend, breaching the $43,000 level.
The decline extended below clear support levels at $42,500 and $42,300, with a brief dip below $42,000. A low was established around $41,637, and now the price is making efforts for a new upward movement. Bitcoin managed to surpass the $42,000 level, climbing above the 23.6% Fibonacci retracement level of the recent downward move from the $44,430 high to the $41,637 low.
However, the current trading position is below $43,000 and the 100-hourly Simple Moving Average. Additionally, a significant bearish trend line is taking shape with resistance around $43,200 on the hourly chart of the BTC/USD pair.
Looking ahead, immediate resistance is anticipated near the $43,000 level, in proximity to the 50% Fibonacci retracement level of the downward move from the $44,430 high to the $41,637 low. The primary obstacle lies at the trend line and $43,200, serving as the first major resistance zone.
A breakthrough above the resistance at $43,200 has the potential to initiate a significant upward movement towards the $44,000 level. Subsequently, the next crucial resistance is likely around $44,300, surpassing which Bitcoin could ascend towards the $45,000 level. Further gains beyond this point may propel the price towards $46,500.
Could Bitcoin (BTC) Face Further Declines?
Should Bitcoin fail to surpass the resistance zone at $43,000, it may initiate a new downtrend. Immediate support on the downside is situated around the $42,000 level.
The subsequent significant support level rests at $41,620. A breach below $41,620 poses a risk of further losses. In such a scenario, there is a potential for the price to decline towards the $40,000 support in the near term.
Key technical indicators:
- Hourly MACD: The MACD is currently decelerating in the bearish zone.
- Hourly RSI (Relative Strength Index): The RSI for BTC/USD has dipped below the 50 level.
Crucial Support Levels: $42,000, followed by $41,620.
Crucial Resistance Levels: $43,000, $43,200, and $44,300.