Bitcoin experienced a downward correction that saw it trade below $42,000 against US Dollars. To avoid a trend reverse, BTC should remain above $40,000
- Bitcoin experienced a sharp decline, falling below its $43,000- and $42,000 levels.
- It is currently trading at $43,000, below the simple 100-hour moving average.
- The hourly chart for the BTC/USD pair showed a breaking below a significant bullish trend line, with support close to $42,500 (data feed Kraken).
- While the couple may be in a better place, $40,000 of support will remain the key.
Bitcoin Price Breaks Support
The $43,000 level of support was not reached by Bitcoin. BTC traded lower than the $42,500 support zone and continued to decline.
The Fib retracement level at 23.6% of the crucial increase in price from $37,030 swing lows to $45,350 highs was broken below. A break was also seen below the major bullish trendline with support at $42,500 in the hourly chart for the BTC/USD pair.
Bitcoin trading is below $43,000 at the moment and above its 100 hourly simple moving mean. It has tested the $41,200 resistance level. The Fib level for the important increase of $37,030 from its low point to the high $45,350 is near 50%.
The price could increase again if it remains above the $41,200 level. Surprisingly, the first resistance level is at the $42,000 mark. Near the $42,500 mark and the 100-hourly simple moving average is the first major resistance.
Source: BTCUSD from TradingView.com
The pace of a further increase could be set by a clear break above the $42,500 resistance. If the above scenario is true, then the price might surpass the $43,000 zone. For bulls, the next significant resistance could be at the $44,200 mark.
BTC Losses:
It could fall further if bitcoin does not clear the $42,500 resistance area. The $41,200 area is a support zone for the downside.
Near the $40,200 mark is the next significant support. The $40,000 support level is the main support. A downside break below $40,000 could cause a significant decline in the price.
Indicators technical
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 30 level.
Major Support Levels – $41,200, followed by $40,000.
Major Resistance Levels – $42,000, $42,500 and $43,000.
