- Bitcoin price started a major decline from the $45,000 zone against the US Dollar.
- The price is now trading below $42,000 and the 55 simple moving average (4-hours).
- There is a key bearish trend line forming with resistance near $40,800 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
- The pair could decline heavily if there is a clear move below $40,000 and $39,500.
Bitcoin price is struggling below the $41,000 resistance against the US Dollar. BTC could nosedive if there is a clear move below the $40,000 support.
Bitcoin Price Analysis
Bitcoin price failed to settle above the $45,000 resistance zone. As a result, BTC started a fresh decline and traded below the key $43,500 support zone.
The last swing high was formed near $47,200 before there was a steady decline. There was a clear move below the $42,000 level and the 55 simple moving average (4-hours). The price even spiked below the $40,000 level. A low is formed near $39,200 and the price is now consolidating losses.
An immediate resistance on the upside is near the $40,500 level. The next major resistance on the upside is near the $40,800 level. There is also a key bearish trend line forming with resistance near $40,800 on the 4-hours chart of the BTC/USD pair.
The trend line is close to the 23.6% Fib retracement level of the downward move from the $47,200 swing high to $39,204 low. The next major resistance could be near the $43,200 zone and the 55 simple moving average (4-hours). An intermediate resistance could be near the $42,000 level.
The 50% Fib retracement level of the downward move from the $47,200 swing high to $39,204 low is also near $43,200. To start another increase, the price must settle above the $43,200 level in the near term.
If there is no upside break, the price might start a fresh decline below $40,000. The next key support is near the $39,200 level. Any more losses might call for a test of the key $37,500 support zone, where the bulls might take a stand.
Looking at the chart, bitcoin price is clearly trading below $41,000 and the 55 simple moving average (4-hours). Overall, the price could decline heavily if there is a clear move below $40,000 and $39,500.
Technical Indicators
4 hours MACD – The MACD is now losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.
Key Support Levels – $40,000 and $39,000.
Key Resistance Levels – $40,800, $42,000 and $43,200.
