TA: Bitcoin Resumes Decline, Why BTC Could Revisit $40K

Aayush Jindal

1 year ago

2 mins read

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Bitcoin started a fresh decline from the $43,400 zone against the US Dollar. BTC remains at a risk of more downsides below the $41,500 level.

Bitcoin started a fresh decline after it failed to surpass $43,400.
The price is now trading below $42,200 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $43,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a strong decline if there is a clear move below the $41,500 level.

Bitcoin Price Turns Red

Bitcoin price attempted an upside correction above the $42,500 level. BTC climbed above the $43,000 level, but it faced a strong selling interest near $43,400.

The price also struggled to stay above the $43,000 level and the 100 hourly simple moving average. As a result, there was a fresh decline below the $42,500 support zone. The price gained bearish momentum and traded below $42,000.

It is now trading below $42,200 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $43,200 on the hourly chart of the BTC/USD pair.

A low is formed near $41,805 and the price is now consolidating losses. An immediate resistance on the upside is near the $42,185 level. It is close to the 23.6% Fib retracement level of the recent decline from the $43,416 swing high from the $41,805 low.

The next resistance could be near $42,600. It is near a pivot zone and the 50% Fib retracement level of the recent decline from the $43,416 swing high from the $41,805 low. The main resistance is now forming near $43,000 and the 100 hourly SMA.

Source: BTCUSD on TradingView.com

Bitcoin price must clear the $42,600 and $43,000 resistance levels to start a decent increase. In the stated case, the price may perhaps rise towards the $43,600 resistance zone.

More Losses in BTC?

If bitcoin fails to clear the $43,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $41,800 level.

The next major support is seen near the $41,500 level. A downside break below the $41,500 support zone could accelerate losses. In the stated case, the price could drop towards the $40,500 support in the near term. The next major support might be $40,000.

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 – $41,500, followed by $40,500.

Major Resistance Levels – $42,600, $43,000 and $43,600.

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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