Bitcoin Shows Bearish Signs
The price of Bitcoin has started to show some bearish signs after reaching a high of $44,699. It is currently trading below $43,500 and the 100 hourly Simple Moving Average. There was also a break below a key bullish trend line with support near $43,500 on the BTC/USD pair’s hourly chart.
Bitcoin Price Drops Heavily
After breaking the $40,000 resistance, Bitcoin remained in a bullish zone. It climbed steadily above the $42,000 and $43,000 levels and even rallied above $44,000. However, it failed to test the $45,000 resistance and started a sharp downside correction. The price moved below $44,000 and broke a key bullish trend line with support near $43,500.
The pair also declined below the 50% Fib retracement level of its upward move from the $39,398 swing low to the $44,699 high. Currently, Bitcoin is trading below $43,500 and the 100 hourly Simple Moving Average.
$40K Is The Key For BTC
If Bitcoin fails to rise above the $43,200 resistance zone, it could initiate another decline. Immediate support on the downside is near the $41,200 level. The next major support is near $40,500 and if that level is breached, there is a risk of further downsides. In that case, the price could drop towards the $38,500 support in the near term.
The first major resistance for Bitcoin is forming near $43,200. A close above this level could lead to bullish momentum and a rise towards $44,000. The next key resistance lies around $44,200 and if surpassed, BTC could reach the $45,000 level.
Technical Indicators and Levels
The MACD indicator is currently in the bearish zone and the RSI for BTC/USD is below the 30 level. The major support levels to watch are $41,200 and $40,000, while the major resistance levels are $42,400, $43,200, and $44,200.
Source: BTCUSD on TradingView.com
Hot Take: Bitcoin Faces Bearish Pressure as It Fails to Break Resistance
The recent price action of Bitcoin suggests that it is facing bearish pressure as it failed to break the resistance at $45,000. After reaching a high of $44,699, the cryptocurrency started a sharp downside correction and is currently trading below key support levels. The $40,000 zone seems to be a critical area where strong buying interest could be found. If Bitcoin fails to rise above the immediate resistance at $43,200, it could lead to further declines towards the $38,500 support level. Traders should closely monitor these key levels as they will likely determine the next move for Bitcoin.
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