Bitcoin Showing Early Signs of Fresh Decline, But $40K Is the Key

Bitcoin started a downside correction and traded below $42,000 against the US Dollar. BTC must stay above $40,000 to avoid a trend reversal.

Bitcoin started a fresh decline below the $43,000 and $42,000 levels.
The price is trading below $43,000 and the 100 hourly simple moving average.
There was a break below a major bullish trend line with support near $42,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might correct further, but the $40,000 support is the key.

Bitcoin Price Breaks Support
Bitcoin price failed to stay above the $43,000 support zone. BTC extended decline and traded below the $42,500 support level.
There was a move below the 23.6% Fib retracement level of the key increase from the $37,030 swing low to $45,350 high. Besides, there was a break below a major bullish trend line with support near $42,500 on the hourly chart of the BTC/USD pair.
Bitcoin is now trading below $43,000 and the 100 hourly simple moving average. It is testing the $41,200 support level. It is also near the 50% Fib retracement level of the key increase from the $37,030 swing low to $45,350 high.
If the price stays above the $41,200 support, it could attempt a fresh increase. On the upside, an initial resistance is near the $42,000 level. The first key resistance is near the $42,500 level and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com
A clear move above the $42,500 resistance might set the pace for a fresh increase. In the stated case, the price could surpass the $43,000 resistance zone. The next major resistance for the bulls may possibly be near the $44,200 level.
More Losses in BTC?
If bitcoin fails to clear the $42,500 resistance zone, it could continue to move down. An immediate support on the downside is near the $41,200 zone.
The next major support is seen near the $40,200 level. The main support is still near the $40,000 level. If there is a downside break below the $40,000 support, the price might start a major decline.
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 30 level.
Major Support Levels – $41,200, followed by $40,000.
Major Resistance Levels – $42,000, $42,500 and $43,000.

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 66,647.86
ethereum
Ethereum (ETH) $ 3,622.51
tether
Tether (USDT) $ 0.999832
bnb
BNB (BNB) $ 610.35
solana
Solana (SOL) $ 151.15
staked-ether
Lido Staked Ether (STETH) $ 3,620.83
usd-coin
USDC (USDC) $ 1.00
xrp
XRP (XRP) $ 0.488885
dogecoin
Dogecoin (DOGE) $ 0.137073
the-open-network
Toncoin (TON) $ 7.94
cardano
Cardano (ADA) $ 0.416629
shiba-inu
Shiba Inu (SHIB) $ 0.000021
avalanche-2
Avalanche (AVAX) $ 30.06
tron
TRON (TRX) $ 0.117322
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 66,708.87
chainlink
Chainlink (LINK) $ 15.13
uniswap
Uniswap (UNI) $ 11.89
polkadot
Polkadot (DOT) $ 6.40
bitcoin-cash
Bitcoin Cash (BCH) $ 428.30
near
NEAR Protocol (NEAR) $ 5.64
litecoin
Litecoin (LTC) $ 78.99
matic-network
Polygon (MATIC) $ 0.618863
wrapped-eeth
Wrapped eETH (WEETH) $ 3,761.14
leo-token
LEO Token (LEO) $ 5.88
dai
Dai (DAI) $ 1.00
pepe
Pepe (PEPE) $ 0.000012
internet-computer
Internet Computer (ICP) $ 9.62
kaspa
Kaspa (KAS) $ 0.160675
ethereum-classic
Ethereum Classic (ETC) $ 25.45
fetch-ai
Fetch.ai (FET) $ 1.47
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,605.50
aptos
Aptos (APT) $ 7.89
ethena-usde
Ethena USDe (USDE) $ 1.00
monero
Monero (XMR) $ 176.91
render-token
Render (RNDR) $ 8.39
hedera-hashgraph
Hedera (HBAR) $ 0.086301
filecoin
Filecoin (FIL) $ 5.24
mantle
Mantle (MNT) $ 0.900556
stellar
Stellar (XLM) $ 0.099030
cosmos
Cosmos Hub (ATOM) $ 7.21
blockstack
Stacks (STX) $ 1.90
okb
OKB (OKB) $ 46.26
arbitrum
Arbitrum (ARB) $ 0.923856
crypto-com-chain
Cronos (CRO) $ 0.098866
dogwifcoin
dogwifhat (WIF) $ 2.61
immutable-x
Immutable (IMX) $ 1.71
first-digital-usd
First Digital USD (FDUSD) $ 0.999853
injective-protocol
Injective (INJ) $ 25.05
sui
Sui (SUI) $ 0.970147
optimism
Optimism (OP) $ 2.09