Bitcoin price drops below $40,000, can bulls turn the tide?
Bitcoin price extended its losses and fell below the $40,000 support zone. BTC is consolidating losses and remains at risk of further declines below $38,500.
Bitcoin price is gaining bearish momentum below the $40,500 area. The price is trading below $40,500 and the 100 hourly simple moving average. There is a bearish trend line connecting with resistance near $40,850 on the hourly chart of the BTC/USD pair (data via Kraken). The pair is likely to pull back above $40,000, but bears are likely to remain active near $40,500.
Bitcoin price takes a hit
Bitcoin price remains in bearish territory below the $42,000 support zone. BTC bears gained strength and pushed the price below the $40,000 support zone.
A new weekly low was formed near $39,451 and the price is now consolidating losses. It is slowly recovering above $39,800. It is approaching the 23.6% Fib retracement level of the recent swing high of $42,260 to low of $39,451.
Bitcoin is currently trading below $40,500 and the 100 hourly simple moving average. Immediate resistance is near $40,150. The first major resistance level is near $40,850. There is also a connecting bearish trend line forming with resistance near $40,850 on the hourly chart of the BTC/USD pair.
The trendline is near the 50% Fib retracement level of the recent swing high of $42,260 to low of $39,451. A clear break above the $40,850 resistance could push the price towards the $41,250 resistance. The next level of resistance is currently forming near $42,000. A close above $42,000 could push the price higher. The next major resistance level is $43,000.
Does Bitcoin Have More Downside?
If Bitcoin fails to rise above the $40,850 resistance zone, it may continue to fall. Immediate support on the downside is near $39,650.
The next major support level is $39,500. If there is a close below $39,500, the price may gain bearish momentum. In the above scenario, the price may fall towards the $38,500 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
The main support level – $39,500, followed by $38,500.
The main resistance levels – $40,500, $40,850, and $41,250.
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