Home CryptocurrencyAnalysis Bitcoin price turns red, why BTC could fall below $40,000

Bitcoin price turns red, why BTC could fall below $40,000

by SuperiorInvest

Bitcoin price started a fresh decline below the $41,250 support zone. BTC is showing bearish signs and could fall sharply below the $40,000 support zone.

  • Bitcoin price is gaining bearish momentum below the $41,500 zone.
  • The price is trading below $41,500 and the 100 hourly simple moving average.
  • A key bearish trend line is forming with resistance near $41,320 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is now at risk of further declines if it breaks the $40,000 support zone.

Bitcoin price resumes bearish trend

Bitcoin price struggled to stay above the $42,200 support zone. However, BTC failed to overcome many obstacles and began a new decline below the $42,000 level.

There was a move below the $41,500 and $41,250 support levels. The price even shot below the $40,500 level. A low is formed near $40,369 and the price is now consolidating losses. It is now trading near the 23.6% Fibonacci retracement level of the recent decline from the high of $42,260 to the low of $40,369.

Bitcoin is now trading below $41,500 and the 100 hourly simple moving average. The immediate resistance is near the $41,000 level. The first major resistance is near the $41,250 level. There is also a key bearish trend line forming with resistance near $41,320 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

The trend line is near the 50% Fibonacci retracement level of the recent drop from the high of $42,260 to the low of $40,369. A clear move above the $41,320 resistance could send the price towards the $42,000 resistance. The next resistance is now forming near the $42,200 level. A close above the $42,200 level could push the price up further. The next major resistance lies at $43,250.

More losses in BTC?

If Bitcoin fails to break above the $42,200 resistance zone, it could continue to decline. Immediate support on the downside is near the $40,500 level.

The next major support is $40,000. If there is a close below $40,000, the price could gain bearish momentum. In the indicated case, the price could fall towards the $38,500 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: $40,500, followed by $40,000.

Main resistance levels: $41,500, $42,000 and $42,200.

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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