HomeBitcoin NewsBitcoin Price Analysis: BTC Near Inflection Zone At $40K

Bitcoin Price Analysis: BTC Near Inflection Zone At $40K

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  • Bitcoin price started a major decline below the $43,000 support against the US Dollar.
  • The price is now trading below $43,000 and the 55 simple moving average (4-hours).
  • There is a major bearish trend line forming with resistance near $43,000 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair must settle above $43,000 to start a steady increase in the near term.

Bitcoin price is recovering higher above $42,000 against the US Dollar. BTC could extend gains if there is a clear break above the $43,000 level.

Bitcoin Price Analysis

Bitcoin price started a major decline from well above the $44,000 zone. BTC broke the $43,200 and $42,000 support levels to enter a bearish zone.

The price even spiked below $41,500 and settled below the 55 simple moving average (4-hours). It traded as low as $40,786 and recently started an upside correction. There was a break above the $41,000 and $41,500 levels.

The price climbed above the 23.6% Fib retracement level of the recent decline from the $44,288 swing high to $40,786 low. On the upside, an initial resistance is near the $42,520 level. There is also a major bearish trend line forming with resistance near $43,000 on the 4-hours chart of the BTC/USD pair.

The trend line is close to the 50% Fib retracement level of the recent decline from the $44,288 swing high to $40,786 low. The main resistance is forming near the $43,000 zone. A close above the $43,000 zone is needed for a fresh increase. In the stated case, the price is likely to rise steadily towards the $44,200 level.

An immediate support on the downside is near the $41,500 level. The first key support is near the $40,750 level. If the price fails to stay above $40,750, it could revisit the $39,600 support zone. Any more losses could open the doors for a move towards the $38,000 support zone.

Bitcoin Price
Bitcoin Price

Looking at the chart, bitcoin price is clearly trading below $43,000 and the 55 simple moving average (4-hours). Overall, the price must settle above $43,000 to start a steady increase in the near term.

Technical indicators

4 hours MACD – The MACD is now gaining momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI is still below the 50 level.

Key Support Levels – $41,200 and $40,750.

Key Resistance Levels – $42,500, $43,000 and $44,200.

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Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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