Bitcoin Price Declines Below $43,500
The price of Bitcoin experienced a significant drop after failing to test the $50,000 resistance zone. It reached a peak near $49,000 before starting a major decline. This downward movement led to a strong break below the $48,000 and $46,500 support levels.
Furthermore, the bears pushed the price even lower, below the $45,000 support zone. The decline amounted to over 12% and tested the $41,500 support zone. Eventually, the price started to recover slightly and saw a minor increase above the $42,000 resistance zone.
Bitcoin Faces Resistance and Forms Bearish Trend Line
However, Bitcoin is still trading below $43,500 and the 100 hourly Simple Moving Average (SMA). On the upside, immediate resistance can be found near the $42,800 level.
In addition, a bearish trend line is forming with resistance near $42,850 on the hourly chart of the BTC/USD pair. The first major resistance level is at $43,250 or the 23.6% Fibonacci retracement level of the downward move from the $49,000 swing high to the $41,476 low.
Potential Upside Targets for Bitcoin
If Bitcoin manages to surpass the $43,250 resistance level, it could potentially reach the $44,000 resistance level. The next significant resistance is forming near the $45,200 level, which corresponds to the 50% Fibonacci retracement level.
A close above the $45,300 level could trigger a strong upward movement and push the price higher. The next major resistance sits at $47,000.
Possible Downside Scenarios for Bitcoin
If Bitcoin fails to rise above the $43,250 resistance zone, it could initiate a fresh decline. The immediate support on the downside is near the $42,120 level.
The next major support level is at $41,500. If the price drops below this level, it could gain bearish momentum and potentially drop towards the $40,000 support level in the near term.
Technical Indicators
The hourly MACD (Moving Average Convergence Divergence) is currently showing a slowdown in the bearish zone. The hourly RSI (Relative Strength Index) for BTC/USD is below the 50 level.
Hot Take: Bitcoin Faces Resistance and Potential for Further Decline
Bitcoin’s recent price decline has led to it trading below key levels of support and facing resistance. The failure to surpass the $50,000 resistance zone resulted in a significant drop, with the bears pushing the price lower. Although there has been a slight recovery, Bitcoin is still struggling to break through resistance levels and remains below the 100 hourly SMA.
To continue its upward trend, Bitcoin must overcome resistance near $42,800 and $43,250. Failure to do so could lead to further declines, with potential downside targets at $42,120 and $41,500. Technical indicators suggest that bearish momentum may be building.
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