Bitcoin started a fresh decline and dropped as low as $41,800. According to technical analysis by NewsBTC’s Aayush Jindal, there is a risk of more declines below the $41,500 level.
Bitcoin Keeps Falling
Bitcoin attempted an upside correction above the $42,500 level but faced strong selling interest around $43,400. As a result, there was a fresh decline below the $42,500 support zone. The decline gained momentum and traded below $42,000.
It is now trading below $42,200 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $43,200 on the hourly chart of the BTC/USD pair. A bottom was formed near $41,805 and the price is now consolidating losses.
The next resistance could be near $42,600. This is close to a pivot zone and the 50% Fib retracement level of the recent decline from the $43,416 high to $41,805 low. The main resistance is currently forming near $43,000 and the 100 hourly SMA.
$43,000 Significant
Bitcoin must surpass the $42,600 and $43,000 resistance levels to start a decent rise. In the stated case, the price could rise towards the $43,600 resistance zone.
Will Bitcoin Drop More?
Jindal says that if Bitcoin fails to break past the $43,000 resistance zone, it may continue to move lower. An immediate support on the downside is near the $41,800 level.
The next major support is seen near the $41,500 level. A downside break below the $41,500 support zone could accelerate losses. In the stated case, the price could decline to the $40,500 support in the near term. The next big support could be $40,000.
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 – 41,500 then $40,500
- Major Resistance Levels – 42,600, 43,000 and 43,600
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