Bitcoin Struggles to Break Resistance
The price of Bitcoin attempted to rally above the $42,000 resistance level but was unsuccessful. Currently, it is trading below $42,500 and the 100 hourly Simple Moving Average (SMA).
Key Bearish Trend Line and Support Zone
A bearish trend line is forming with resistance near $41,250 on the BTC/USD hourly chart. If the price fails to hold above the $40,000 support zone, it may experience further losses.
Bitcoin Price Turns Red
Bitcoin started a fresh increase from the $40,000 support zone, briefly surpassing the $41,500 resistance level before facing rejection. The price was unable to gain strength above the $42,250 and $42,300 resistance levels and has since declined. It is currently consolidating losses after reaching a low near $40,606.
Bitcoin remains below both $42,500 and the 100 hourly SMA. The immediate resistance lies near $41,200 along with a key bearish trend line near $41,250 on the BTC/USD chart.
Possible Resistance Levels
If Bitcoin manages to break above the bearish trend line and resistance at $41,450, it may encounter further resistance near $41,900 and eventually at $42,300. A clear move above $43,000 could set the stage for a test of $44,000.
Potential for More Losses
If Bitcoin fails to overcome the resistance at $41,250, it could experience another decline. Immediate support is found near $40,600 and if that level breaks, the next major support lies at $40,000. Further losses could lead to a test of the $39,500 zone and potentially drop towards $38,500 in the near future.
Technical indicators show that the MACD is indicating bearish momentum and the RSI for BTC/USD is below the 50 level.
Hot Take: Bitcoin Struggles to Gain Momentum
Despite attempting to rally, Bitcoin has faced resistance at key levels and has struggled to gain momentum. The failure to break above the $42,000 resistance zone has resulted in a fresh decline. Bitcoin’s price remains below important resistance levels and support is crucial to prevent further losses. Traders are closely watching the bearish trend line near $41,250 for any potential breakthrough. If Bitcoin fails to overcome this obstacle, there is a risk of additional downside towards the $40,000 and $39,500 support levels. However, a successful break above the resistance could lead to a potential rise towards $43,000 and beyond.
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