Home CryptocurrencyAnalysis Bitcoin Price Takes a Hit, Can Bulls Protect Major Support at $40,000?

Bitcoin Price Takes a Hit, Can Bulls Protect Major Support at $40,000?

by SuperiorInvest

Bitcoin price extended its decline below the $41,450 support zone. BTC is showing bearish signs and might 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 key bearish trend line 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 further declines towards the $40,000 support zone.

Bitcoin price gains bearish momentum

Bitcoin price failed to start a recovery wave above the $43,250 resistance zone. BTC formed a short-term high and began another decline below the $42,120 support zone.

The bears were able to push the price below the $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% Fibonacci retracement level of the recent decline from the high of $43,569 to the low of $40,625.

Bitcoin is now trading below $42,000 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $42,100 on the hourly chart of the BTC/USD pair.

On the upside, the price is facing resistance near the $41,675 level. The next key resistance is near the $42,100 area and the trend line. It is also close to the 50% Fib retracement level of the recent drop from the high of $43,569 to the low of $40,625.

Source: BTCUSD on TradingView.com

A clear move above the $42,100 resistance could send the price towards the $43,250 resistance. The next resistance is now forming near the $43,500 level. A close above the $43,500 level could push the price up further. The next major resistance lies at $44,450.

More losses in BTC?

If Bitcoin fails to break above the $42,100 resistance zone, it could continue to decline. The immediate support on the downside is near the $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 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: $40,750, followed by $40,000.

Main resistance levels: $41,675, $42,100 and $43,250.

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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