- 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.
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.
