Bitcoin Price Faces Bearish Momentum Below $40,500
The price of Bitcoin is currently experiencing a bearish trend, trading below the $40,500 level and the 100 hourly Simple Moving Average (SMA). On the BTC/USD hourly chart, there is a bearish trend line forming with resistance near $40,850.
Bitcoin Price Takes Hit as Bears Gain Strength
Bitcoin’s price has remained in a bearish zone below the $42,000 support level. The bears have gained strength and pushed the price below the $40,000 support zone. As a result, a new weekly low has been formed near $39,451.
The price is currently consolidating its losses and slowly recovering above the $39,800 level. It is approaching the 23.6% Fibonacci retracement level of the recent decline from the $42,260 swing high to the $39,451 low.
Possible Correction But Bears Remain Active
While Bitcoin may experience a correction above $40,000, it is likely that bears will remain active near the $40,500 resistance level. Immediate resistance can be found near $40,150, followed by major resistance near $40,850 where a bearish trend line is also forming.
A move above this resistance could potentially push the price towards the next resistance levels at $41,250 and $42,000. However, a close above $42,000 is needed for further upward momentum. The next significant resistance sits at $43,000.
Downside Risk for Bitcoin
If Bitcoin fails to rise above the $40,850 resistance zone, there is a possibility of further downward movement. Immediate support on the downside can be found near the $39,650 level, followed by major support at $39,500.
A close below $39,500 could trigger bearish momentum and potentially lead to a drop towards the $38,500 support level in the near term.
Technical Indicators
Technical indicators show that the MACD is losing pace in the bearish zone on the hourly chart. The RSI for BTC/USD is currently below the 50 level.
Major support levels are identified at $39,500 and $38,500, while major resistance levels are at $40,500, $40,850, and $41,250.
Source: BTCUSD on TradingView.com
Hot Take: Bitcoin Price Struggles Below Key Resistance Level
The price of Bitcoin is facing bearish momentum as it struggles to break above the key resistance level of $40,850. Despite a possible correction above $40,000, bears remain active near the resistance zone. If Bitcoin fails to rise above this level, there is a risk of further downside movement with support levels at $39,650 and $39,500. Technical indicators indicate a bearish trend with the MACD losing pace in the bearish zone and the RSI below 50. Traders should closely monitor the price action around these levels to gauge potential future movements.
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