The Bitcoin price started to fall sharply after trading near $45,000. BTC is down more than 8%, but the bulls seem to be active above $40,000.
- Bitcoin is showing some bearish signs from the high of $44,699.
- The price is trading below $43,500 and the 100 hourly Simple Moving Average.
- There was a break below a key bullish trendline with support near $43,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could find strong buying interest near the $40,000 zone.
Bitcoin price drops sharply
Bitcoin price remained in a bullish zone after breaking the USD 40,000 resistance. BTC steadily climbed higher above the USD 42,000 and USD 43,000 levels. The price even rose above $44,000.
However, it failed to test the $45,000 resistance. A high was formed near $44,699 and the price started a sharp downward correction. There was a move below the USD 44,000 level. Additionally, there was a break below a key bullish trendline with support near $43,500 on the hourly chart of the BTC/USD pair.
The pair fell below the 50% Fib retracement level of the upward move from the $39,398 swing low to the $44,699 high. Bitcoin is now trading below $43,500 and the 100 hourly Simple Moving Average.
However, the bulls are protecting the $40,000 support and the 76.4% Fib retracement level of the upward move from the $39,398 swing low to the $44,699 high. The price is trying to make a recovery wave and is facing resistance near the $42,400 level.
Source: BTCUSD on TradingView.com
The first major resistance forms around $43,2000, above which the price could gain bullish momentum and rise towards $44,000. A close above the $44,000 resistance could trigger a strong upside move. The next major resistance could be near USD 44,200, above which BTC could rise towards the USD 45,000 level.
$40K is the key for BTC
If Bitcoin fails to rise above the USD 43,200 resistance zone, it could trigger another decline. The immediate downside support is near the USD 41,200 level.
The next major support is near USD 40,500, below which the price could test the USD 40,000 zone. If there is a move below $40,000, there is a risk of more downside. 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 30 level.
Major support levels – USD 41,200, followed by USD 40,000.
Major resistance levels – $42,400, $43,200 and $44,200.
