Bitcoin price extended its decline below the $40,000 support zone. BTC consolidates losses and remains at risk of more downside below $38,500.
- Bitcoin price is gaining bearish momentum below the $40,500 zone.
- The price is trading below $40,500 and the 100 hourly Simple Moving Average.
- A connecting bearish trendline is forming with resistance near $40,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct above $40,000, but the bears could remain active around $40,500.
Bitcoin price takes a hit
Bitcoin price remained in a bearish zone below the $42,000 support zone. BTC bears gained strength and were able to push the price below the $40,000 support zone.
A new weekly low was formed near $39,451 and the price is now consolidating losses. It is slowly recovering above the USD 39,800 level. It is approaching the 23.6% Fib retracement level of the recent decline from the $42,260 swing high to the $39,451 low.
Bitcoin is now trading below $40,500 and the 100 hourly Simple Moving Average. The immediate resistance is near the $40,150 level. The first major resistance is around the $40,850 level. A connecting bearish trendline is also forming with resistance around $40,850 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
The trendline is close to the 50% Fib retracement level of the recent decline from the $42,260 swing high to the $39,451 low. A clear move above the USD 40,850 resistance could send the price towards the USD 41,250 resistance. The next resistance is now forming around the $42,000 level. A close above the USD 42,000 level could push the price further higher. The next major resistance is at $43,000.
More disadvantages of BTC?
If Bitcoin fails to rise above the USD 40,850 resistance zone, it could continue to decline. The immediate downside support is near the $39,650 level.
The next major support is $39,500. If there is a close below $39,500, the price may gain bearish momentum. In the mentioned case, the price could fall towards the USD 38,500 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 39,500, followed by USD 38,500.
Major resistance levels – $40,500, $40,850 and $41,250.
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