Bitcoin has been facing rejection as its price drops below the $42,650 zone. This decline suggests bearish signs and could potentially lead to a further drop towards the $40,000 support level. Key resistance levels at $43,500 and $43,650 have been difficult to overcome, leading to the downward movement.
Currently, Bitcoin is trading below $43,000 and the 100 hourly Simple Moving Average, indicating a bearish trend. There is also a notable bearish trend line forming with resistance near $43,200 on the BTC/USD pair’s hourly chart.
The price briefly dipped below $42,000, hitting a low of around $41,637 before attempting a slight recovery. However, it is now trading below the 100 hourly Simple Moving Average and struggling to gain momentum.
The immediate resistance for Bitcoin is near the $43,000 level, followed by the trend line at $43,200. If the price manages to break above these levels, it could start a decent upward move towards $44,000 and potentially even reach $46,500.
On the contrary, if Bitcoin fails to rise above the $43,000 resistance zone, it may experience further declines. The immediate support level on the downside is at $42,000, and if the price breaks below this, it could drop towards the $41,620 support level. In the worst-case scenario, Bitcoin could revisit the $40,000 support level.
Technical indicators such as the hourly MACD and Relative Strength Index (RSI) are currently showing bearish signals with the MACD losing pace in the bearish zone and the RSI below the 50 level.
As always, it is important to conduct thorough research and consider all risks before making any investment decisions. This article is for educational purposes only and does not constitute financial advice.