Bitcoin Dives Below $40K, Why Bulls Could Struggle In Near Term

Bitcoin started a strong decline from the $43,500 resistance against the US Dollar. BTC remains at a risk of more downsides below the $39,200 support.

Bitcoin started a major decline after it failed to clear the $43,500 resistance.
The price is still trading below $41,000 and the 100 hourly simple moving average.
There was a break below a major bullish trend line with support near $42,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to move down if there is a break below the $39,200 support.

Bitcoin Price Declines Heavily
Bitcoin price gained pace for a move above the $42,500 level. However, BTC struggled to gain pace for a move above the $43,500 resistance zone.
A high was formed near $43,497 before the bears appeared. As a result, there was a fresh decline below the $42,000 support level and the 100 hourly simple moving average. Besides, there was a break below a major bullish trend line with support near $42,000 on the hourly chart of the BTC/USD pair.
There was a fresh decline below the $41,200 support zone. Bitcoin even declined below the $40,000 support zone. A low is formed near $39,261 and the price is now consolidating losses.
On the upside, an initial resistance is near the $40,250 level. It is near the 23.6% Fib retracement level of the recent decline from the $43,497 swing high to $39,261 low. The first major resistance is near the $40,500 level. An upside break above the $40,500 resistance could start a steady recovery wave towards $41,200.

Source: BTCUSD on TradingView.com
The next key resistance is near the $41,200 level, above which the bulls might aim a test of $42,500. Any more gains may perhaps call for a move towards the $43,500 resistance zone.
Fresh Drop in BTC?
If bitcoin fails to start a fresh increase above $40,500, it could start a fresh decline. An immediate support on the downside is near the $39,500 zone.
The first major support is seen near the $39,200 zone. A downside break below the $39,200 support zone may perhaps spark another major decline. The next major support is near $38,500, below which the price could even decline below the $38,000 zone.
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 in the oversold zone.
Major Support Levels – $39,500, followed by $39,200.
Major Resistance Levels – $40,250, $40,500 and $41,200.

Avatar

Related Articles

Stay Connected

22,014FansLike
3,310FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 30,455.00
ethereum
Ethereum (ETH) $ 2,075.83
tether
Tether (USDT) $ 1.00
usd-coin
USD Coin (USDC) $ 1.00
binance-coin
BNB (BNB) $ 305.57
xrp
XRP (XRP) $ 0.431313
cardano
Cardano (ADA) $ 0.579072
solana
Solana (SOL) $ 56.42
binance-usd
Binance USD (BUSD) $ 1.00
polkadot
Polkadot (DOT) $ 11.07
dogecoin
Dogecoin (DOGE) $ 0.089740
avalanche-2
Avalanche (AVAX) $ 33.90
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 30,467.00
staked-ether
Lido Staked Ether (STETH) $ 2,040.45
shiba-inu
Shiba Inu (SHIB) $ 0.000013
tron
TRON (TRX) $ 0.070297
dai
Dai (DAI) $ 1.00
crypto-com-chain
Cronos (CRO) $ 0.199873
litecoin
Litecoin (LTC) $ 70.40
matic-network
Polygon (MATIC) $ 0.707361
near
NEAR Protocol (NEAR) $ 6.83
leo-token
LEO Token (LEO) $ 4.91
ftx-token
FTX Token (FTT) $ 32.32
bitcoin-cash
Bitcoin Cash (BCH) $ 204.97
chainlink
Chainlink (LINK) $ 7.74
stellar
Stellar (XLM) $ 0.140078
cosmos
Cosmos Hub (ATOM) $ 11.65
okb
OKB (OKB) $ 12.80
algorand
Algorand (ALGO) $ 0.484069
monero
Monero (XMR) $ 169.24
flow
Flow (FLOW) $ 2.96
ethereum-classic
Ethereum Classic (ETC) $ 21.39
apecoin
ApeCoin (APE) $ 8.52
uniswap
Uniswap (UNI) $ 5.25
elrond-erd-2
Elrond (EGLD) $ 98.34
hedera-hashgraph
Hedera (HBAR) $ 0.106795
vechain
VeChain (VET) $ 0.032089
internet-computer
Internet Computer (ICP) $ 8.53
theta-fuel
Theta Fuel (TFUEL) $ 0.070336
magic-internet-money
Magic Internet Money (MIM) $ 0.997167
decentraland
Decentraland (MANA) $ 1.23
filecoin
Filecoin (FIL) $ 8.62
compound-ether
cETH (CETH) $ 41.90
the-sandbox
The Sandbox (SAND) $ 1.37
chain-2
Chain (XCN) $ 0.096689
tezos
Tezos (XTZ) $ 1.83
axie-infinity
Axie Infinity (AXS) $ 20.66
defichain
DeFiChain (DFI) $ 3.10
frax
Frax (FRAX) $ 1.00
maker
Maker (MKR) $ 1,649.30