Bitcoin fell below $42,000 against US Dollar. BTC still faces downside risks if it remains below the $43,000 pivot area.
- Bitcoin continued to decline, trading below the $42,000 threshold.
- The daily simple moving average is at 100 hours and the price trades below $43,000
- The hourly chart for the BTC/USD pair shows a rising channel with support close to $41,650 (datafeed from Kraken).
- If the recovery wave is not above $43,000, then the pair may continue to slide.
Bitcoin price continues to decline
BTC price fell below the $45,000- and $43,500 support levels. BTC also fell below the $42,000 support level to continue its decline into a bearish area.
Below the $43,000 threshold and the 100 hourly moving average, the price settled. A push to $40,000. was attempted by the bears. Before there was a recovery wave, a low of around $40,555 was reached. Price recovered to above $42,000 and the 100-hourly simple moving average.
But, bears continued to be active in the vicinity of $42,800. The price has fallen to $42,786 after a high was reached near $42,786. The recent wave, which included the $42,786 low and the $40555 swing low, saw a decline below 23.6% Fib levels.
It trades at the $41,750 support. It is trading at $41,650.
On the hourly charts of BTC/USD, there’s a rising channel with support close to $41,650. Surprisingly, there is a major resistance at the $42,250 mark and near the 100-hourly SMA. Near the $43,000 threshold is the next major resistance.
Source: BTCUSD at TradingView.com
The potential for a significant recovery wave could be initiated by a clear break above the $43,000 resistance area. Next is the $44,500 resistance level.
BTC: What are the Downsides?
Bitcoin could fall further if it fails to rebound above $43,000. Support is located near $41,800. A channel trend line and $41,650 are the nearest major supports.
If the trendline support is breached, a downside breakout could lead to a drop below $41,000. If the above scenario is true, then the price might fall towards $40,000 soon.
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 50 level.
Major Support Levels – $41,650, followed by $40,000.
Major Resistance Levels – $42,750, $43,000 and $44,500.