Home CryptocurrencyAnalysis Bitcoin Price Faces Uphill Task, Risk of Additional Losses Looms Below $42,000

Bitcoin Price Faces Uphill Task, Risk of Additional Losses Looms Below $42,000

by SuperiorInvest

Bitcoin price is still struggling below the $43,250 resistance zone. BTC remains at risk of further downside if it remains below $43,500 for long.

  • Bitcoin price is still trading in a range from the $41,500 zone.
  • The price is trading below $43,250 and the 100 hourly simple moving average.
  • There was a break below a key ascending channel with support near $42,880 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is now at risk of further declines below the $41,500 support zone.

Bitcoin price turns red

Bitcoin price began a consolidation phase from the $41,500 area. BTC recovered a few points, but the bears were active near the $43,250 and $43,500 levels.

The last high was near $43,568 before the price started a new decline. There was a clear move below the $43,000 level. Additionally, there was a break below a key ascending channel with support near $42,880 on the hourly chart of the BTC/USD pair.

Bitcoin is now trading below $43,250 and the 100 hourly simple moving average. It is again attempting a recovery wave above the $42,500 level.

On the upside, the price is facing resistance near the $42,800 level. It is close to the 50% Fibonacci retracement level of the recent drop from the high of $43,568 to the low of $42,190. The first major resistance is $43,000. The main resistance is now forming near the $43,250 level.

Source: BTCUSD on TradingView.com

The 76.4% Fib retracement level of the recent decline from the high of $43,568 to the low of $42,190 is also near $43,250. A clear move above the resistance of $43,250 could send the price towards the resistance of $44,000. The next resistance is forming near the $44,250 level. A close above the $44,250 level could push the price up further. The next major resistance is at $45,000.

More losses in BTC?

If Bitcoin fails to break above the $43,250 resistance zone, it could start a new decline. Immediate downside support is near the $42,120 level.

The next major support is $41,450. If there is a close below $41,450, the price could gain bearish momentum. In the indicated case, the price could fall towards the $40,000 support in the near term.

Technical indicators:

MACD Hourly: The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Main support levels: $42,120, followed by $41,450.

Main resistance levels: $43,000, $43,250 and $44,000.

Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC’s views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.

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