Bitcoin Price Turns Red, Why BTC Could Tumble Below $40K
Bitcoin price started a fresh decline below the $41,250 support zone. BTC is showing bearish signs and might decline heavily 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.
There is a key bearish trend line 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 more downsides if it breaks the $40,000 support zone.
Bitcoin Price Resumes Downtrend
Bitcoin price struggled to stay above the $42,200 support zone. However, BTC failed to clear many hurdles and started a fresh decline below the $42,000 level.
There was a move below the $41,500 and $41,250 support levels. The price even spiked below the $40,500 level. A low is formed near $40,369 and the price is now consolidating losses. It is now trading near the 23.6% Fib retracement level of the recent drop 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. Immediate resistance is near the $41,000 level. The first major resistance is near the $41,250 level. There is also a key bearish trend line forming with resistance near $41,320 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
The trend line is close to the 50% Fib retracement level of the recent drop from the $42,260 swing high to the $40,369 low. A clear move above the $41,320 resistance could send the price toward the $42,000 resistance. The next resistance is now forming near the $42,200 level. A close above the $42,200 level could push the price further higher. The next major resistance sits at $43,250.
More Losses In BTC?
If Bitcoin fails to rise above the $42,200 resistance zone, it could continue to move down. Immediate support on the downside is near the $40,500 level.
The next major support is $40,000. If there is a close below $40,000, the price could gain bearish momentum. 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 – $40,500, followed by $40,000.
Major Resistance Levels – $41,500, $42,000, and $42,200.
