Bitcoin Price Dips Again and Signals A Larger Pullback To $38K
Bitcoin price struggled to start a fresh increase above the $42,300 resistance zone. BTC is declining and is now at a risk of more downsides below $40,000.
Bitcoin failed to start a fresh increase above the $42,000 resistance zone.
The price is trading below $42,500 and the 100 hourly Simple moving average.
There is a key bearish trend line forming with resistance near $41,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could extend losses if there is a close below the $40,000 support zone.
Bitcoin Price Turns Red
Bitcoin price started a fresh increase from the $40,000 support zone. BTC climbed above the $41,500 resistance zone, but it failed to continue higher.
The price failed to gain strength above the $42,250 and $42,300 resistance levels. A high was formed near $42,300 and the price started a fresh decline. There was a drop below the $42,000 and $41,500 levels. A low is formed near $40,606 and the price is now consolidating losses.
Bitcoin is also trading below $42,500 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $41,200 level. Besides, there is a key bearish trend line forming with resistance near $41,250 on the hourly chart of the BTC/USD pair.
The first major resistance is forming near $41,450. It is near the 50% Fib retracement level of the downward move from the $42,300 swing high to the $40,606 low.
Source: BTCUSD on TradingView.com
The next key resistance might be the 76.4% Fib retracement level of the downward move from the $42,300 swing high to the $40,606 low at $41,900. A close above the $41,900 resistance might start a steady increase. The next key resistance could be near $42,300, above which BTC could rise toward the $43,000 level. A clear move above the $43,000 level could set the pace for a test of $44,000.
More Losses In BTC?
If Bitcoin fails to rise above the $41,250 resistance zone, it could start another decline. Immediate support on the downside is near the $40,600 level.
The next major support is near $40,000, below which the price might test the $39,500 zone. If there is a move below $39,500, there is a risk of more losses. In the stated case, the price could drop toward the $38,500 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $40,600, followed by $40,000.
Major Resistance Levels – $41,250, $41,900, and $42,300.
