Bitcoin Price Dives Below $40K, Can Bulls Save The Day?

Republished By Plato

Followers: 0

Bitcoin price extended its decline below the $40,000 support zone. BTC is consolidating losses and remains at risk of more downsides 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 connecting bearish trend line forming with resistance near $40,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might correct above $40,000 but the bears could remain active near $40,500.

Bitcoin Price Takes 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 was formed near $39,451 and the price is now consolidating losses. It is slowly recovering above the $39,800 level. It is approaching the 23.6% Fib retracement level of the recent decline from the $42,260 swing high to the $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 connecting bearish trend line forming with resistance near $40,850 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 decline from the $42,260 swing high to the $39,451 low. A clear move above the $40,850 resistance could send the price toward 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 further higher. The next major resistance sits at $43,000.

More Downsides In BTC?

If Bitcoin fails to rise above the $40,850 resistance zone, it could continue to move down. Immediate support on the downside 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 stated case, the price could drop toward the $38,500 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace 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 opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.