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Bitcoin price began a sharp decline after trading near $45,000. BTC is down over 8%, but bulls appear to be active above $40,000.
- Bitcoin is showing some bearish signs from the high of $44,699.
- The price is trading below $43,500 and the 100 hourly simple moving average.
- There was a break below a key uptrend line with support near $43,500 on the hourly chart of the BTC/USD pair (Kraken data feed).
- The pair could find strong buying interest near the $40,000 zone.
Bitcoin price falls sharply
Bitcoin price remained in a bullish zone after breaking through the $40,000 resistance. BTC has been climbing steadily above the $42,000 and $43,000 levels. The price even exceeded $44,000.
However, it failed to test the $45,000 resistance. A high was formed near $44,699 and the price began a sharp downward correction. There was a move below the $44,000 level. Furthermore, there was a break below a key uptrend line with support near $43,500 on the hourly chart of the BTC/USD pair.
The pair fell below the 50% Fibonacci retracement level of the upward move from the $39,398 low to $44,699 high. Bitcoin is now trading below $43,500 and the 100 hourly simple moving average.
However, the bulls are protecting the $40,000 support and the 76.4% Fibonacci retracement level of the upward move from the $39,398 low to $44,699 high. The price is attempting a recovery wave and faces resistance near the $42,400 level.
Source: BTCUSD on TradingView.com
The first major resistance forms near $43,2000, above which the price could gain bullish momentum and reach $44,000. A close above the $44,000 resistance could begin a strong move higher. The next key resistance could be near $44,200, above which BTC could reach the $45,000 level.
$40,000 is the key to BTC
If Bitcoin fails to move above the $43,200 resistance zone, it could begin a further decline. Immediate downside support is near the $41,200 level.
The next major support is near $40,500, below which the price could test the $40,000 zone. If there is a move below $40,000, there is a risk of further downside. In the indicated case, the price could fall to the $38,500 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now accelerating into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 30 level.
Major support levels – $41,200, followed by $40,000.
Major resistance levels – $42,400, $43,200 and $44,200.
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