Bitcoin price started a new decline below the USD 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 major bearish trendline 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 even more downside if it breaks the $40,000 support zone.
Bitcoin price resumes the downtrend
Bitcoin price struggled to stay above the $42,200 support zone. However, BTC failed to overcome many hurdles and started a new decline below the USD 42,000 level.
There was a move below the USD 41,500 and USD 41,250 support levels. The price even spiked below the $40,500 level. A low is formed near USD 40,369 and the price is now consolidating losses. It is now trading near the 23.6% Fib retracement level of the recent decline from the $42,260 swing high to the $40,369 low.
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 around the $41,250 level. There is also a major bearish trendline forming with resistance around $41,320 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
The trendline is close to the 50% Fib retracement level of the recent decline from the $42,260 swing high to the $40,369 low. A clear move above the USD 41,320 resistance could send the price towards the USD 42,000 resistance. The next resistance is now forming near the $42,200 level. A close above the USD 42,200 level could push the price further higher. The next major resistance is at $43,250.
Lose more in BTC?
If Bitcoin fails to rise above the USD 42,200 resistance zone, it could continue to decline. The immediate downside support is near the USD 40,500 level.
The next big support is $40,000. If there is a close below $40,000, the price could gain bearish momentum. 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 50 level.
Major support levels – USD 40,500, followed by USD 40,000.
Major resistance levels – $41,500, $42,000 and $42,200.
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