#Bitcoinprice Takes Hit, Can Bulls Protect The Main Support at $40K?
Bitcoin faced selling pressure below the $41,450 support zone and is displaying bearish signals, potentially struggling to hold above the $40,000 support level.
Despite attempting a recovery above the $43,250 resistance, Bitcoin couldn't sustain upward momentum and initiated another decline, breaching the $42,120 support. The bears successfully pushed the price below $41,450, establishing a new weekly low near $40,625. Currently consolidating losses, Bitcoin is trading near the 23.6% Fib retracement level of the recent downtrend from the $43,569 swing high to the $40,625 low.
As Bitcoin trades below $42,000 and the 100 hourly Simple Moving Average, a key bearish trend line is forming with resistance around $42,100 on the hourly chart. Resistance at $41,675 is the immediate hurdle, followed by the $42,100 zone and the trend line. This area aligns closely with the 50% Fib retracement level of the recent decline.
A successful break above $42,100 resistance might propel the price towards the $43,250 resistance, and further gains could target the $43,500 level. Beyond that, the next significant resistance stands at $44,450.
Conversely, if Bitcoin struggles to surpass the $42,100 resistance, it could face additional downsides. Initial support lies near $40,750, followed by the crucial $40,500 level. A close below $40,500 might intensify bearish momentum, leading Bitcoin towards the $40,000 support in the short term.
Technical indicators depict increased bearish momentum, with the #MACD gaining pace in the bearish zone and the hourly #RSI dropping below the 50 level.
In summary, Bitcoin is encountering challenges in its attempt to rally, and failure to break above key resistances could result in further losses. On the downside, the $40,500 support remains crucial, and a breach may lead to increased selling pressure, testing the $40,000 support level.
Source - newsbtc.com