TA: Bitcoin Dives To $40K, What Could Trigger More Downsides
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Bitcoin started a fresh decline below the $43,000 support against the US Dollar. BTC declined sharply to $40,000 and might continue to move down.
- Bitcoin started a fresh decline below the $43,000 and $42,500 support levels.
- The price is trading below $42,000 and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $43,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could correct higher, but upsides might be limited above $42,000.
Bitcoin Price Turns Red
Bitcoin price failed to stay above the $43,180 support level and extended decline. BTC traded below the $42,500 support level to enter a bearish zone.
The decline gained pace below the $42,000 level and the 100 hourly simple moving average. Besides, there was a break below a major bullish trend line with support near $43,600 on the hourly chart of the BTC/USD pair. The pair even broke the $40,500 support and traded as low as $40,100.
It is now consolidating losses below the $41,000 level. On the upside, an initial resistance is near the $41,000 level. It is near the 23.6% Fib retracement level of the recent dive from the $44,375 swing high to $40,100 low.
Source: BTCUSD on TradingView.com
The next key resistance is near the $41,620 level. The main resistance is now forming near the $42,250 level. It is close to the 50% Fib retracement level of the recent dive from the $44,375 swing high to $40,100 low. A clear move above the $42,250 resistance zone might start a decent increase. The next major resistance is near $42,750, above which the price might rise towards the $43,200 level.
More Losses in BTC?
If bitcoin fails to start a recovery wave above the $41,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $40,350 zone.
The next major support is seen near the $40,000 level. If there is a downside break below the $40,000 support zone, the price might gain bearish momentum for a move to $38,800.
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 well below the 50 level.
Major Support Levels – $40,350, followed by $40,000.
Major Resistance Levels – $41,000, $41,650 and $42,250.
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