fbpx

Bitcoin Breaks Key Support, Why BTC Could Revisit $40K

Bitcoin price failed to stay above the key $45,000 support zone against the US Dollar. BTC is showing a few bearish signs and it could correct lower to $40k.

  • Bitcoin extended its decline below the $45,500 and $45,000 support levels.
  • The price is now trading below $46,000 and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $45,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could recover losses, but upsides might be limited above $45,500.

Bitcoin Price Dips Further

Bitcoin price started a fresh decline after it failed to clear the $48,000 resistance zone. BTC broke the $46,500 support zone to move into a short-term bearish zone.

It is consolidating above $45,500 for some time, but the bears finally took control. As a result, there was a push below the $45,000 support and the 100 hourly simple moving average. Bitcoin even spiked below $44,500 and traded as low as $44,258.

It is now consolidating losses above the $44,500 level. There was a break above the 23.6% Fib retracement level of the recent decline from the $47,203 swing high to $44,258 low.

On the upside, an immediate resistance is near the $45,000 level. The first key resistance is near the $45,700 level (the recent breakdown zone). There is also a key bearish trend line forming with resistance near $45,800 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

The trend line coincides with the 50% Fib retracement level of the recent decline from the $47,203 swing high to $44,258 low. If bitcoin clears the $45,700 and $45,800 resistance levels, it could recover towards the $47,000 level in the near term.

More Losses in BTC?

If bitcoin fails to climb above the $45,700 and $45,800 resistance levels, it could extend its decline. An initial support on the downside is near the $44,500 level.

The first major support is now near the $44,200 zone. The next main support is now near the $43,800 level. If the price fails to stay above the $43,800 support, it could move down towards the $40,000 support level.

Technical indicators:

Hourly MACD – The MACD is losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 40 level.

Major Support Levels – $44,500, followed by $43,800.

Major Resistance Levels – $45,700, $45,800 and $47,000.

Source link

Leave a Reply

Your email address will not be published.

^N225 
$27,819.33  $180.63  0.65%  
SGHIF 
$1.41  $0.0000  0.00%  
^HSIL 
$23.81  $1.73  6.77%  
SZNTF 
$0.2006  $0.0000  0.00%  
KOSPI.KS 
$2,523.78  $42.90  1.73%  
AUS.NZ 
$3.08  $0.012  0.39%  
^NSEI 
₹ 17,653.65  ₹ 118.90  0.68%  
FCNBCA.FGI 
$8,168.17  $179.46  2.25%  
EURUSD=X 
$1.03  $0.003  0.29%  
GBPUSD=X 
$1.22  $0.0004  0.03%  
JPY=X 
$132.65  $0.223  0.17%  
^GSPC 
$4,210.24  $87.77  2.13%  
NDAQ 
$186.60  $3.43  1.87%  
^DJI 
$33,309.51  $535.11  1.63%