Bitcoin Price Turns At Risk of More Losses – Why BTC Could Revisit $40K

Bitcoin price topped near the $49,000 resistance zone. BTC started a major decline and broke many key supports at $45,000 to enter a short-term bearish zone.

• Bitcoin peaked near the $49,000 level and started a steady decline.
• The price is trading below $43,500 and the 100 hourly Simple moving average.
• There is a connecting bearish trend line forming with resistance near $42,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a fresh decline if there is a move below the $41,500 support zone.

Bitcoin Price Takes Major Hit

Bitcoin price failed to test the $50,000 resistance zone. BTC peaked near the $49,000 level and started a major decline. There was a strong decline below the $48,000 and $46,500 support levels.

The bears even pushed the price below the $45,000 support zone. It declined over 12% and tested the $41,500 support zone. A low was formed near $41,476 and the price started a recovery wave. There was a minor increase above the $42,000 resistance zone.

However, Bitcoin is still trading below $43,500 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $42,800 level.

There is also a connecting bearish trend line forming with resistance near $42,850 on the hourly chart of the BTC/USD pair. The first major resistance is $43,250 or the 23.6% Fib retracement level of the downward move from the $49,000 swing high to the $41,476 low.

Source: BTCUSD on TradingView.com

A clear move above the $43,250 resistance could send the price toward the $44,000 resistance. The next resistance is now forming near the $45,200 level. It is near the 50% Fib retracement level of the downward move from the $49,000 swing high to the $41,476 low. A close above the $45,300 level could start a strong increase and send the price higher. The next major resistance sits at $47,000.

More Losses In BTC?

If Bitcoin fails to rise above the $43,250 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $42,120 level.

The next major support is $41,500. If there is a move below $41,500, the price could gain bearish momentum. In the stated case, the price could drop toward the $40,000 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $42,120, followed by $41,500.

Major Resistance Levels – $42,800, $43,250, and $44,000.

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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• Source: https://www.newsbtc.com/analysis/btc/bitcoin-price-turns-at-risk-40k/