Bitcoin Price Plummets by Over 10%
The price of Bitcoin experienced a significant decline, dropping below the $40,000 level. It is currently trading below $43,500 and the 100 hourly Simple Moving Average. This decline was accompanied by the breaking of a key bullish trend line with support near $43,200 on the BTC/USD pair’s hourly chart.
Reasons for the Decline
Bitcoin struggled to surpass the $46,000 resistance level and faced strong selling pressure. Additionally, rumors of spot ETF rejection further contributed to the bearish sentiment in the market.
Possible Recovery
After reaching a low near $39,500, Bitcoin initiated a recovery wave. The price managed to move above the $41,500 and $42,000 levels. However, it is still trading below the 100 hourly SMA and faces immediate resistance near $43,200. A close above the $43,500 level could potentially lead to further upward movement.
Potential Downward Movement
If Bitcoin fails to break above the $43,500 resistance zone, it may experience another decline. The immediate support lies near $42,000, followed by a major support level at $41,300. A move below this level could result in bearish momentum and a potential drop towards the $40,500 support level.
Technical Indicators
The hourly MACD is losing pace in the bullish zone while the RSI for BTC/USD is now below 50. These indicators suggest a potential continuation of the bearish trend.
Hot Take: Bitcoin Faces Resistance as Price Plummets
The recent decline in Bitcoin’s price has raised concerns among investors. The failure to break above key resistance levels and the impact of rumors surrounding spot ETF rejection have contributed to the bearish sentiment. While a recovery wave has been observed, Bitcoin still faces challenges in surpassing resistance levels and maintaining upward momentum. Traders are closely watching the $43,500 level for a potential breakthrough that could lead to further gains. However, if Bitcoin fails to overcome this resistance, a fresh decline may be on the horizon.
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