Bitcoin experienced a steep decline after the resistance of $43,500 against the US Dollar. BTC is still at risk for more downgrades under the $39,000.
- After it fell below the $43,500 resistance, Bitcoin began a significant decline.
- The current price trades below $41,000 as well as the 100-hourly simple moving median.
- A break was seen below the major bullish trendline with support at $42,000 (data feed Kraken).
- A break below $39,000.00 support could cause the pair to continue its downward movement.
Bitcoin Price Declines Heavily
Bitcoin prices rose to $42,500. BTC failed to make a significant move in the direction of the $43,500 resistance.
Before the bears arrived, a high of $43,497 was reached. A new decline was seen below the $42,000 level of support and the 100 hourly simple movement average. A break was also observed below the major bullish trend line, with support at $42,000 in the hourly chart for the BTC/USD pair.
The $41,200 support level was breached again. Bitcoin also fell below $40,000 support zone. The price has now fallen to $39,261 near the low point.
The initial resistance for the downside is located at or near $40,250. This is close to the 23.6% Fib level of the decline from $43,497 high to $39.261 low. It is close to the $40,500 resistance level. If the upside breaks above the $40,000.500 resistance, it could signal a slow recovery to $41,200.
Source: BTCUSD from TradingView.com
Near the $41,200 mark, which is where the next major resistance lies. The bulls could attempt a $42,500 test above that level. The $43,500 resistance level may become a target for any more gains.
BTC Drops Freshly
Bitcoin could begin a new decline if it fails to gain a significant increase over $40,500. Support for the downside lies in the $39,000.
Near the $39,000.00 support zone is the first significant support. A negative break below $39,200 could trigger another big decline. Near $38,500 is the next support zone, and below that the price may even fall below the $38,000 area.
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is in the oversold zone.
Major Support Levels – $39,500, followed by $39,200.
Major Resistance Levels – $40,250, $40,500 and $41,200.