Bitcoin Price Turns Red, Why BTC Could Tumble Below $40K

Aayush Jindal

Last Updated: June 11, 2024 11:15 am

2 mins read

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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.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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