Bitcoin experienced a sharp decline against the US Dollar, having fallen to $44,000. BTC broke through the $42,500 support level and still faces potential downsides.
- Bitcoin trades below the important support area of $42,500
- This price trades below $42,500 as well as the 100 hourly simple moving median.
- A key bearish trendline is emerging with resistance close to $42,200 in the hourly BTC/USD chart (data feed Kraken).
- It is possible for the pair to fall even further if it does not recover from above $42,800.
Bitcoin price continues to decline
The $45,500 resistance was not broken and Bitcoin prices began a steep decline. BTC fell below USD 42,500 and $43,200 support levels in order to enter a bearish zone.
The closing price was below $42,50 and the 100-hourly simple moving average. The price has been consolidating its losses since a low formed at $41,573. The $42,000 mark is the immediate resistance. Near the $42,200 mark is the first significant resistance.
A key bearish trend line is also emerging with resistance close to $42,200 in the hourly charts of BTC/USD. This could provide the next resistance at $42,500. It is also the level of 23.6% Fib Retracement from the recent fall from $45,900 high, to $41,573 low.
Source: BTCUSD at TradingView.com
It seems that the main resistance is forming around the $42,850 and the 100 hourly simple average. The price could rise to $43,750 if it moves above the 100-hourly simple moving average. The price is close to the Fib retracement of 50% the decline in the stock market from $45,900 high and $41,573 low.
BTC Losses:
Bitcoin could fall further if it fails to increase its price above $42,850. A support area for bitcoin near $41,600 is immediate.
Next major support can be seen at the $41,200 level. A downside breakout below $41,200 could lead to a significant decline in the price towards $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 – $41,600, followed by $41,200.
Major Resistance Levels – $42,200, $42,850 and $43,000.
