Bitcoin failed to clear the $41,500 resistance zone once again. According to technical analysis by NewsBTC’s Aayush Jindal, if there is a clear move below the $39,200 support zone, BTC could increase losses.
Bitcoin Wipes Gains
Bitcoin price corrected higher yesterday above the $41,000 resistance zone, but the bears were active near the $41,500 level. A top was formed near $41,548 and the price started a fresh decline. There was a clear move below the $41,000 support zone. The price settled below the 50% Fib retracement level of the recent rise from the $39,269 high to $41,548 high.
Moreover, there was a break below a key uptrend line with support near $40,400 on the hourly chart of the BTC/USD pair. Besides, it settled below the 76.4% Fib retracement level of the recent rise from the $39,269 high to $41,548 high. An immediate resistance is near the $40,200 level. The next key resistance could be $40,400 and the 100 hourly SMA.
$40,400 Level Significant
If the bulls can clear the $40,400 and $40,500 resistance levels, the price could start a decent increase. In this case, the price could rally towards the $41,000 resistance zone. Any further gains could set the pace for a move towards the key $41,500 level in the near term.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to break past the $40,400 resistance zone, it could start another decline. An immediate support on the downside is near the $39,650 level. The next major support is seen near the $39,250 level. A downside break below the $39,250 support zone could accelerate losses. In the stated case, the price could decline towards $38,500 or even $37,750.
What Do Technical Indicators Say?
- Hourly MACD – The MACD is now gaining momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
- Major Support Levels – 39,650 followed by $39,250
- Major Resistance Levels – $40,400, 41,000 and 41,500
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