Bitcoin price once again failed to move above the USD 43,500 resistance level. BTC started another decline and could revisit the $40,000 support soon.
- Bitcoin is moving lower below the $42,000 support zone.
- The price is trading below $42,000 and the 100 hourly Simple Moving Average.
- A major bearish trendline is forming with resistance near $41,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could find strong buying interest around the $40,600 and $40,000 levels.
Bitcoin price drops below $42,000
Bitcoin price tried to make more gains above the USD 43,000 level. However, BTC failed to clear the USD 43,500 resistance and formed a new rejection pattern.
A high was formed near $43,421 and the price started falling again. There was a move below the USD 42,200 and USD 42,000 levels. The price fell below the 50% Fib retracement level of the upward move from the $40,605 swing low to the $43,421 high.
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 $41,800 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
On the upside, immediate resistance is around the $41,250 level. The first major resistance forms around $41,800 and the trendline. A close above the resistance at $41,800 could trigger a steady rise. The next major resistance could be near USD 42,250, above which BTC could rise towards the USD 42,800 level. A clear move above the USD 42,800 level could set the pace for a test of USD 43,500.
Lose more in BTC?
If Bitcoin fails to rise above the USD 41,800 resistance zone, it could continue to decline. The immediate downside support is near the $40,600 level or last swing low.
The next major support is near $40,000. It is close to the 1.236 Fib extension level of the upward move from the $40,605 swing low to the $43,421 high, below which the price could test the $39,500 zone. If there is a move below $39,500, there is a risk of more losses. In the mentioned case, the price could fall towards the support at $38,400 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 20 level.
Major support levels – USD 40,600, followed by USD 40,000.
Major resistance levels – $41,250, $41,800 and $42,250.
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