- Bitcoin price started a downside correction from the $44,400 zone against the US Dollar.
- The price is now trading below $43,200 and the 55 simple moving average (4 hours).
- There is a key bearish trend line forming with resistance near $43,000 on the 4-hour chart of the BTC/USD pair (data feed from Coinbase).
- The pair could start a fresh increase if it stays above the $40,500 support zone.
Bitcoin price is correcting lower below $43,200 against the US Dollar. BTC might eye another increase if the bulls remain active above the $40,500 zone.
Bitcoin Price Analysis
Bitcoin price extended its increase above the $42,000 level and rallied toward the $45,000 resistance zone. A high was formed near $44,424 before the price started a downside correction. There was a clear move below the $43,500 and $43,200 levels.
The bears were able to push the price toward the 50% Fib retracement level of the upward move from the $40,508 swing low to the $44,424 high. The price even spiked below $42,000.
Bitcoin is now trading below $43,200 and the 55 simple moving average (4 hours). There is also a key bearish trend line forming with resistance near $43,000 on the 4-hour chart of the BTC/USD pair. Immediate resistance on the upside is near the $42,850 level.
The next major resistance might be near the $43,000 zone and the 55 simple moving average (4 hours). A clear move above the $43,000 level might send the price toward $44,400, above which the price might rise toward the $45,000 level. Any more gains might push the price toward the $46,500 zone.
If there is no upside break, the price might continue to decline below the $41,500 level or the 76.4% Fib retracement level of the upward move from the $40,508 swing low to the $44,424 high. The first major support is $40,500.
The next key support is near the $40,000 level, below which the price might accelerate lower. In the stated case, the price could decline toward the $38,500 level. Any more losses might send the price toward the $36,000 level.
Looking at the chart, Bitcoin price is clearly trading below $43,200 and the 55 simple moving average (4 hours). Overall, the price could start a fresh increase if it stays above the $40,500 support zone.
Technical Indicators
4 hours MACD – The MACD is now losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.
Key Support Levels – $41,500 and $40,500.
Key Resistance Levels – $42,850, $43,000, and $44,450.
