Bitcoin Dives To $40K, What Could Trigger More Downsides

Bitcoin started a fresh decline below the $43,000 support against the US Dollar. BTC declined sharply to $40,000 and might continue to move down.

Bitcoin started a fresh decline below the $43,000 and $42,500 support levels.
The price is trading below $42,000 and the 100 hourly simple moving average.
There was a break below a major bullish trend line with support near $43,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct higher, but upsides might be limited above $42,000.

Bitcoin Price Turns Red
Bitcoin price failed to stay above the $43,180 support level and extended decline. BTC traded below the $42,500 support level to enter a bearish zone.
The decline gained pace below the $42,000 level and the 100 hourly simple moving average. Besides, there was a break below a major bullish trend line with support near $43,600 on the hourly chart of the BTC/USD pair. The pair even broke the $40,500 support and traded as low as $40,100.
It is now consolidating losses below the $41,000 level. On the upside, an initial resistance is near the $41,000 level. It is near the 23.6% Fib retracement level of the recent dive from the $44,375 swing high to $40,100 low.

Source: BTCUSD on TradingView.com
The next key resistance is near the $41,620 level. The main resistance is now forming near the $42,250 level. It is close to the 50% Fib retracement level of the recent dive from the $44,375 swing high to $40,100 low. A clear move above the $42,250 resistance zone might start a decent increase. The next major resistance is near $42,750, above which the price might rise towards the $43,200 level.
More Losses in BTC?
If bitcoin fails to start a recovery wave above the $41,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $40,350 zone.
The next major support is seen near the $40,000 level. If there is a downside break below the $40,000 support zone, the price might gain bearish momentum for a move to $38,800.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.
Major Support Levels – $40,350, followed by $40,000.
Major Resistance Levels – $41,000, $41,650 and $42,250.

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 41,938.24
ethereum
Ethereum (ETH) $ 2,208.57
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 230.99
xrp
XRP (XRP) $ 0.610399
solana
Solana (SOL) $ 60.52
usd-coin
USDC (USDC) $ 1.00
staked-ether
Lido Staked Ether (STETH) $ 2,205.96
cardano
Cardano (ADA) $ 0.399730
dogecoin
Dogecoin (DOGE) $ 0.089264
tron
TRON (TRX) $ 0.102765
chainlink
Chainlink (LINK) $ 15.35
the-open-network
Toncoin (TON) $ 2.39
avalanche-2
Avalanche (AVAX) $ 21.94
matic-network
Polygon (MATIC) $ 0.792756
polkadot
Polkadot (DOT) $ 5.54
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 41,828.21
shiba-inu
Shiba Inu (SHIB) $ 0.000009
dai
Dai (DAI) $ 0.997360
litecoin
Litecoin (LTC) $ 71.87
bitcoin-cash
Bitcoin Cash (BCH) $ 239.98
uniswap
Uniswap (UNI) $ 6.18
leo-token
LEO Token (LEO) $ 3.70
okb
OKB (OKB) $ 57.23
stellar
Stellar (XLM) $ 0.120198
monero
Monero (XMR) $ 169.31
kaspa
Kaspa (KAS) $ 0.138967
true-usd
TrueUSD (TUSD) $ 0.999781
ethereum-classic
Ethereum Classic (ETC) $ 19.83
cosmos
Cosmos Hub (ATOM) $ 9.55
crypto-com-chain
Cronos (CRO) $ 0.094269
internet-computer
Internet Computer (ICP) $ 4.95
near
NEAR Protocol (NEAR) $ 2.17
filecoin
Filecoin (FIL) $ 4.59
hedera-hashgraph
Hedera (HBAR) $ 0.064032
lido-dao
Lido DAO (LDO) $ 2.32
aptos
Aptos (APT) $ 7.38
thorchain
THORChain (RUNE) $ 6.28
bittensor
Bittensor (TAO) $ 320.83
immutable-x
Immutable (IMX) $ 1.42
vechain
VeChain (VET) $ 0.024554
mantle
Mantle (MNT) $ 0.559772
blockstack
Stacks (STX) $ 1.14
binance-usd
BUSD (BUSD) $ 1.00
optimism
Optimism (OP) $ 1.72
quant-network
Quant (QNT) $ 100.13
aave
Aave (AAVE) $ 96.39
the-graph
The Graph (GRT) $ 0.151433
injective-protocol
Injective (INJ) $ 16.05
arbitrum
Arbitrum (ARB) $ 1.06