Bitcoin’s gains against the US Dollar surpassed $42,500. BTC was unable to surpass $43,000, and it began a sharp downward correction.
- Bitcoin experienced a second decline when it was unable to surpass the $43,000 resistance area.
- The price currently trades at $41,000.
- The hourly BTC/USD chart showed a breaking below a significant bullish trend line, with support close to $41,250 (datafeed from Kraken).
- Although the pair may try to increase their share, the $41,000 resistance is the key.
Bitcoin Prices Drop
The Bitcoin price was well above the $41,500 resistance area. BTC gained momentum and passed the $42,000 barrier. The price of Bitcoin even surpassed $42,500, and it also crossed the simple 100 hour moving average.
The bulls were unable to move the price higher than $43,000. Near $42,950 was the high and then the price responded to its downside. A sharp drop below $42,000 was observed. On the hourly chart for the BTC/USD pair, the price also fell below a significant bullish trend line that has support close to $41,250.
The 50% Fib Retracement level for the upward movement from $38,750 low to $42,950 high was broken below. Bitcoin trades below $41,000, the simple 100-hour moving average and is currently trading at $41,050.
Now, the price has consolidated above the 61.8% Fib Retracement level for the upward movement from $38,750 low to $42,950 high. The $40,750 mark is the immediate resistance. Key resistances for the upside could include $40,950 or the simple moving average of 100 hours.
Source: BTCUSD from TradingView.com
Price must rise above the $41,000 level and the 100 hourly simple movement average to start an upward trend. The price may rise to the $41,800 resistance zone if the bulls win.
BTC: More losses
Bitcoin could move lower if it fails to break the $41,000 resistance level. Support for the downside lies near the $40,000.250 level.
Near the $40,000 mark is where you will find the next significant support. A decline below the $40,000 level could push the price toward the $39250 support zone.
Indicators technical
Hourly MACD – The MACD is slowly 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 – $40,250, followed by $40,000.
Major Resistance Levels – $40,750, $41,000 and $41,800.
