Bitcoin Remains at Risk, Why 100 SMA Is The Key

Bitcoin still struggles to hold below $41,500 against US Dollar. BTC still faces the risk of further downsides, below the $39,000 support area.

  • Bitcoin has shown bearish signs, below $41,500 and $40,500.
  • The current price trades below $45,500, and the simple 100-hour moving average is at $40,000.
  • A key bearish trendline is emerging with resistance close to $40,180 in the hourly BTC/USD chart (data feed Kraken).
  • If the pair moves below $39,000, it could continue to fall.

Bitcoin prices resume a decline

The Bitcoin price was still below the $41,500 threshold. BTC is trading above the $39,000 price level, and below the $41,500 resistance area.

Before the upside correction began, the last swing low formed was near $39600. A move over the $40,000 resistance area was observed. It climbed to 23.6% Fib resistance level, which is the lowest point of the decline from $41,548 swing high and $39,000.

But, it faced strong resistance close to the $40,000.00 level and the 100 hourly simple movement average. Bitcoin struggled to hold the 50% Fib level of the decline from the $41,548 swing high and $39,600 lower.

A key bearish trendline is also in place with resistance close to $40,180. This can be seen on the hourly charts of BTC/USD. The $40,200 mark is the immediate resistance.

Bitcoin Price

Source: BTCUSD from TradingView.com

40,380 could become the next major resistance and so would the 100-hourly SMA. For a recovery to begin, prices must cross the $40,380 and 100 hourly SMA zones. The price could rise to the $40,850 resistance level in the above scenario. If the price gains continue, it could be a sign that the market is moving towards the $41,500 threshold in the immediate future.

BTC Losses:

Bitcoin could begin a new decline if it fails to break the $40,180 resistance level. Support for the downside lies near $39600.

Near the $39180 support level, we see the next significant support. The downside movement below $39,180 could lead to losses. The price of the stock could fall to $38,800 or $38,500 in the above scenario.

Indicators technical

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $39,600, followed by $39,180.

Major Resistance Levels – $40,180, $40,400 and $41,500.

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