Bitcoin price extended its decline below the USD 41,450 support zone. BTC is showing bearish signs and could struggle to stay above the $40,000 support zone.
- Bitcoin price is gaining bearish momentum below the $42,500 zone.
- The price is trading below $42,000 and the 100 hourly Simple Moving Average.
- A major bearish trendline is forming with resistance near $42,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is now at risk of more downside towards the $40,000 support zone.
Bitcoin price gains bearish momentum
Bitcoin price failed to initiate a recovery wave above the USD 43,250 resistance zone. BTC formed a short-term top and started to decline again below the $42,120 support zone.
The bears managed to push the price below the USD 41,450 level. A new weekly low was formed near $40,625 and the price is now consolidating losses. It is trading near the 23.6% Fib retracement level of the recent decline from the $43,569 swing high to the $40,625 low.
Bitcoin is now trading below $42,000 and the 100 hourly Simple Moving Average. There is also a major bearish trendline forming with resistance around $42,100 on the hourly chart of the BTC/USD pair.
On the upside, the price is facing resistance around the $41,675 level. The next major resistance is near the $42,100 zone and the trendline. It is also close to the 50% Fib retracement level of the recent decline from the $43,569 swing high to the $40,625 low.
Source: BTCUSD on TradingView.com
A clear move above the USD 42,100 resistance could send the price towards the USD 43,250 resistance. The next resistance is now forming around the $43,500 level. A close above the USD 43,500 level could push the price further higher. The next major resistance is at $44,450.
Lose more in BTC?
If Bitcoin fails to rise above the $42,100 resistance zone, it could continue to decline. The immediate downside support is near the USD 40,750 level.
The next major support is $40,500. If there is a close below $40,500, the price could gain bearish momentum. 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 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 40,750, followed by USD 40,000.
Major resistance levels – $41,675, $42,100 and $43,250.
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