Bitcoin experienced a downturn below $41,200 versus the US Dollar. BTC needs to remain at $40,000 in order for a new increase.
- Bitcoin began a downward correction below $41,200 support.
- The 100-hourly simple moving average and price are both below $41,400.
- On the hourly chart for the BTC/USD pair, there is an important contracting triangle that forms with resistance at $41,400 (data feed Kraken).
- To remain positive, the pair should not fall below $40,000
Bitcoin Price Consolidates
After failing to break the $42,500 resistance level, Bitcoin prices began a downward correction. BTC fell below $42,000 to enter a bearish zone.
Clear movement below the $41,500 support area and the 100-hourly simple moving average was evident. Below the $41,200 support area, the decline picked up. It finally tested the 50% Fib level, which is the pivotal increase in price from $38,808 low to $42,368 high.
Bulls were active over the $40,000.500 support zone. On the hourly chart for the BTC/USD pair, there is a crucial contracting triangle that forms with resistance at $41,400.
The upside is that the price faces resistance at the $41,400 level. SMA 100 is close to the $41,400 level and resistance triangle. Next major resistance may be in the vicinity of $41,500. The steady rise could be initiated by a successful break above $41,500.
Source: BTCUSD from TradingView.com
The price could rise to $42,000 in the above scenario. If the gains continue, the price could rise towards $42,000 in the very near future.
BTC Downside Break
It could fall further if bitcoin does not clear the $41,500 resistance area. A support area near $40,800 is immediate for the downside.
Near the $40,500 mark is the next significant support. Near the $40,000 area is the main support. The 61.8% Fib Retracement Level of the Key Increase from $38,808 low to $42,368 peak is located near it. The price could fall further below the $40,000 support level to reach $38,800.
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 near the 50 level.
Major Support Levels – $40,500, followed by $40,000.
Major Resistance Levels – $41,400, $41,500 and $42,500.
