Bitcoin price struggled to initiate a fresh rise above the USD 42,300 resistance zone. BTC is falling and is now at risk of more downside below $40,000.
- Bitcoin failed to start a new rise above the USD 42,000 resistance zone.
- The price is trading below $42,500 and the 100 hourly Simple Moving Average.
- A major bearish trendline is forming with resistance near $41,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could extend losses if a close occurs below the $40,000 support zone.
Bitcoin price turns red
Bitcoin price started to rise again from the USD 40,000 support zone. BTC climbed above the USD 41,500 resistance zone but failed to hold higher.
The price failed to gain strength above the USD 42,250 and USD 42,300 resistance levels. A high was formed around $42,300 and the price started falling again. There was a decline below the USD 42,000 and USD 41,500 levels. A low is formed near USD 40,606 and the price is now consolidating losses.
Bitcoin is also trading below $42,500 and the 100 hourly Simple Moving Average. On the upside, immediate resistance is around the $41,200 level. Moreover, a major bearish trendline is forming with resistance around $41,250 on the hourly chart of the BTC/USD pair.
The first major resistance forms around $41,450. It is close to the 50% Fib retracement level of the downward move from the $42,300 swing high to the $40,606 low.
Source: BTCUSD on TradingView.com
The next major resistance could be the 76.4% Fib retracement level of the downward move from the $42,300 swing high to the $40,606 low at $41,900. A close above the resistance at $41,900 could trigger a steady rise. The next major resistance could be near USD 42,300, above which BTC could rise towards the USD 43,000 level. A clear move above the USD 43,000 level could set the pace for a test of USD 44,000.
Lose more in BTC?
If Bitcoin fails to rise above the USD 41,250 resistance zone, it could trigger another decline. The immediate downside support is near the USD 40,600 level.
The next major support is near USD 40,000, below which the price could test the USD 39,500 zone. If there is a move below $39,500, there is a risk of more losses. 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 gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – USD 40,600, followed by USD 40,000.
Major resistance levels – $41,250, $41,900 and $42,300.
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