Bitcoin Price Falls Below $42K
The price of Bitcoin has dropped below the $42,000 support zone and is currently trading below both the $42,000 level and the 100 hourly Simple Moving Average. On the BTC/USD hourly chart, a bearish trend line is forming with resistance near $41,800.
Failed Attempt to Break Resistance
Bitcoin attempted to surpass the $43,000 level but failed to clear the $43,500 resistance, resulting in another rejection pattern. The price reached a high near $43,421 before beginning a fresh decline. It fell below the $42,200 and $42,000 levels and broke through the 50% Fib retracement level of the upward move from the $40,605 swing low to the $43,421 high.
Possible Support Levels
If Bitcoin continues to struggle and fails to rise above the $41,800 resistance zone, it could experience further losses. Immediate support on the downside can be found near the $40,600 level or the last swing low. The next major support is near $40,000 and is close to the 1.236 Fib extension level of the upward move from the swing low to the high at $43,421.
Technical Indicators
The MACD on the hourly chart is now in the bearish zone and gaining pace. The RSI for BTC/USD is below 20, indicating a strong bearish sentiment.
Hot Take: Bitcoin Struggles as Price Declines
Bitcoin is facing significant resistance at key levels and has been unable to sustain its recent gains. The failure to break above resistance has led to a fresh decline in price. With strong selling pressure and a bearish trend line forming, the outlook for Bitcoin remains uncertain. Traders and investors should closely monitor support levels, particularly at $40,600 and $40,000. A break below these levels could result in further losses for Bitcoin in the near term.
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