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Bitcoin price extended its decline below the $40,000 support zone. BTC consolidates losses and remains at risk of further declines below $38,500.
- Bitcoin price is gaining bearish momentum below the $40,500 zone.
- The price is trading below $40,500 and the 100 hourly simple moving average.
- There is a connected downtrend line with resistance near $40,850 on the hourly chart of the BTC/USD pair (Kraken data feed).
- The pair could correct above $40,000, but the bears could remain active near $40,500.
Bitcoin price takes a hit
Bitcoin price remained in a bearish zone below the $42,000 support zone. BTC bears gained strength and were able to push the price below the $40,000 support zone.
A new weekly low formed near $39,451 and the price is now consolidating its losses. It is slowly recovering above the $39,800 level. It is approaching the 23.6% Fibonacci retracement level of the recent decline from the $42,260 high to $39,451 low.
Bitcoin is now trading below $40,500 and the 100 hourly simple moving average. Immediate resistance is near the $40,150 level. The first major resistance is near the $40,850 level. There is also a downtrend line forming with resistance near $40,850 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
The trendline is near the 50% Fibonacci retracement level of the recent decline from the $42,260 high to $39,451 low. A sharp move above the $40,850 resistance could push the price towards the $41,250 resistance. The next resistance is now forming near the $42,000 level. A close above the $42,000 level could push the price even higher. The next major resistance lies at $43,000.
More disadvantages in BTC?
If Bitcoin fails to move above the $40,850 resistance zone, it could continue to decline. Immediate downside support is near the $39,650 level.
The next major support is $39,500. If there is a close below $39,500, the price could gain bearish momentum. 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 losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major support levels – $39,500, followed by $38,500.
Major resistance levels – $40,500, $40,850 and $41,250.
Disclaimer: The article is provided for educational purposes only. It does not represent the views of NewsBTC on whether to buy, sell or hold investments and, naturally, investing involves risks. You are advised to carry out your own research before making any investment decision. Use the information provided on this website entirely at your own risk.
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