Bitcoin price extended its decline below the $42,650 zone. BTC is showing some bearish signs and could extend the decline towards the $40,000 support.
- Bitcoin seems to be following a bearish path below the USD 43,500 level.
- The price is trading below $43,000 and the 100 hourly Simple Moving Average.
- A major bearish trendline is forming with resistance around $43,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to decline towards the $40,500 and $40,000 support levels.
Bitcoin price continues to fall
Bitcoin price struggled to initiate a fresh rise above the USD 43,500 and USD 43,650 resistance levels. BTC formed a short-term top and started a new decline below the USD 43,000 level.
There was a clear move below the USD 42,500 and USD 42,300 levels. The price even peaked below the $42,000 level. A low was formed near $41,637 and the price is now trying to make a new move higher. There was a move above the USD 42,000 level.
Bitcoin price climbed above the 23.6% Fib retracement level of the downward move from the $44,430 swing high to the $41,637 low. It is now trading below $43,000 and the 100 hourly Simple Moving Average. There is also a major bearish trendline forming with resistance around $43,200 on the hourly chart of the BTC/USD pair.
On the upside, immediate resistance is around the $43,000 level. It is close to the 50% Fib retracement level of the downward move from the $44,430 swing high to the $41,637 low. The first major resistance forms near the trendline and $43,200.
Source: BTCUSD on TradingView.com
A close above the $43,200 resistance could mark a decent move towards the $44,000 level. The next major resistance could be near USD 44,300, above which BTC could rise towards the USD 45,000 level. Any further gains could send the price to $46,500.
Lose more in BTC?
If Bitcoin fails to rise above the USD 43,000 resistance zone, it could start a new decline. The immediate downside support is near the USD 42,000 level.
The next major support is near $41,620. If there is a move below $41,620, there is a risk of more losses. In the mentioned case, the price could fall towards the $40,000 support in the short term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 42,000, followed by USD 41,620.
Major resistance levels – $43,000, $43,200 and $44,300.
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