Bitcoin price did not stay above the key support zone of $ 42,150 against the US dollar. BTC is in decline and it still risks falling sharply below $ 40,000.
- Bitcoin failed to stay above the main support levels of $ 42,000 and $ 42,150.
- The price is now trading well below $ 45,000 and the 100-hour simple moving average.
- A new major bearish trendline is forming on the hourly chart of the BTC / USD pair (data feed from Kraken) with resistance near USD 44,000.
- The pair is likely to remain below the USD 40,000 support level in the near future.
Bitcoin price breaks double bottom
Bitcoin started a decent rebound from the $ 42,000 and $ 42,150 support levels. However, the bulls were unable to push the price above the $ 46,000 resistance zone.
As a result, the price fell again below the $ 44,000 level. The bears were able to push the price below key support levels of $ 42,000 and $ 42,150 (double bottom zone). It is now trading well below $ 45,000 and the 100-hour simple moving average.
Bitcoin has tested the USD 40,500 support zone and is showing many bearish signs. Initial resistance is near the USD 41,800 zone. It is near the 23.6% fib retracement level of the recent decline from the high of $ 45,774 to the low of $ 40,472.
There is also a new major bearish trendline with resistance near USD 44,000 on the hourly chart of the BTC / USD pair. An intermediate resistance is near the $ 43,200 zone. It is close to the 50% Fib retracement level of the recent decline from the high of $ 45,774 to the low of $ 40,472.
Source: BTCUSD on TradingView.com
A successful close above the $ 43,200 and $ 44,000 levels could open the doors for a decent rebound in the upcoming sessions. The next major resistance is near the $ 46,000 level.
More losses at BTC?
If Bitcoin fails to hit the resistance levels of $ 43,200 and $ 44,000, there is a risk of further losses. Initial downside support is near the $ 40,500 level.
The main support is now forming near the $ 40,000 zone. A downtrend below the recent lows and $ 40,000 could trigger another sharp decline in the short term. The next major support could be $ 36,500.
Hourly MACD – The MACD is now picking up pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC / USD is well below the 30 level.
Major Support Levels – $ 40,500, followed by $ 40,000.
Major Resistance Levels – $ 42,000, $ 43,200, and $ 44,000.