Bitcoin extended decline below the $ 42,000 level against the US Dollar. BTC remains at a risk of more downsides if it stays below the $ 43,000 pivot zone.
- Bitcoin extended decline and traded below the key $ 42,000 support zone.
- The price is trading below $ 43,000 and the 100 hourly simple moving average.
- There is a key rising channel forming with support near $ 41,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might continue to move down if there is no recovery wave above $ 43,000.
Bitcoin Price Extends Decline
Bitcoin price started a major decline below the $ 45,000 and $ 43,500 support levels. BTC even declined below the $ 42,000 support zone to move further into a bearish zone.
The price settled below the $ 43,000 level and the 100 hourly simple moving average. The bears attempted a push towards $ 40,000. A low was formed near $ 40,555 before there was a recovery wave. The price recovered above the $ 42,000 level and the 100 hourly simple moving average.
However, the bears remained active near the $ 42,800 zone. A high is formed near $ 42,786 and the price is now declining. There was a move below the 23.6% Fib retracement level of the recent wave from the $ 40,555 swing low to $ 42,786 high.
It is now trading near the $ 41,750 support. The 50% Fib retracement level of the recent wave from the $ 40,555 swing low to $ 42,786 high is also near $ 41,650.
Besides, there is a key rising channel forming with support near $ 41,650 on the hourly chart of the BTC/USD pair. On the upside, the first major resistance is near the $ 42,250 level and the 100 hourly SMA. The next major resistance is near the $ 43,000 level.
Source: BTCUSD on TradingView.com
A clear move above the $ 43,000 resistance zone could start a decent recovery wave. The next major resistance is near the $ 44,500 level.
More Downsides in BTC?
If bitcoin fails to recover above $ 43,000, it could continue to move down. An immediate support is near the $ 41,800 zone. The first major support is near $ 41,650 and the channel trend line.
A downside break below the trend line support could spark a move below $ 41,000. In the stated case, the price may possibly decline towards the $ 40,000 level in the near term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level.
Major Support Levels – $ 41,650, followed by $ 40,000.
Major Resistance Levels – $ 42,750, $ 43,000 and $ 44,500.
