Bitcoin Price Drops Again – What Could Trigger A Fresh Increase?
Bitcoin price failed again to gather pace above the $43,500 resistance level. BTC started a fresh decline and might soon revisit the $40,000 support.
Bitcoin is moving lower below the $42,000 support zone.
The price is trading below $42,000 and the 100 hourly Simple moving average.
There is a key bearish trend line forming with resistance near $41,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could find strong buying interest near the $40,600 and $40,000 levels.
Bitcoin Price Declines Below $42K
Bitcoin price attempted more gains above the $43,000 level. However, BTC failed to clear the $43,500 resistance and formed another rejection pattern.
A high was formed near $43,421 and the price started a fresh decline. There was a move below the $42,200 and $42,000 levels. The price declined below the 50% Fib retracement level of the upward move from the $40,605 swing low to the $43,421 high.
Bitcoin is now trading below $42,000 and the 100 hourly Simple moving average. There is also a key bearish trend line forming with resistance near $41,800 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
On the upside, immediate resistance is near the $41,250 level. The first major resistance is forming near $41,800 and the trend line. A close above the $41,800 resistance might start a steady increase. The next key resistance could be near $42,250, above which BTC could rise toward the $42,800 level. A clear move above the $42,800 level could set the pace for a test of $43,500.
More Losses In BTC?
If Bitcoin fails to rise above the $41,800 resistance zone, it could continue to move down. Immediate support on the downside is near the $40,600 level or the last swing low.
The next major support is near $40,000. It is close to the 1.236 Fib extension level of the upward move from the $40,605 swing low to the $43,421 high, below which the price might test the $39,500 zone. If there is a move below $39,500, there is a risk of more losses. In the stated case, the price could drop toward the $38,400 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 20 level.
Major Support Levels – $40,600, followed by $40,000.
Major Resistance Levels – $41,250, $41,800, and $42,250.
Filed under: Bitcoin - @ December 18, 2023 2:55 am