Bitcoin price has experienced a setback, falling below the $41,450 support level. Bearish signals are evident, and it may be challenging for the bulls to maintain support at $40,000.
Bitcoin’s bearish momentum has been increasing below the $42,500 zone. The price is currently trading below both $42,000 and the 100-hourly Simple Moving Average. Furthermore, a significant bearish trend line is forming, with resistance around $42,100 on the BTC/USD pair’s hourly chart.
As a result, there is a risk of further downward movement towards the $40,000 support zone. The failure to initiate a recovery rally above the $43,250 resistance zone has signified the formation of a short-term top, culminating in a decline below the $42,120 support level.
Bitcoin is currently trading below $42,000 and the 100-hourly Simple Moving Average. The aforementioned bearish trend line, which is close to the 50% Fib retracement level of the recent decline from the $43,569 swing high to the $40,625 low, presents a significant obstacle at the $42,100 zone.
On the upside, resistance is found near the $41,675 level, followed by the aforementioned $42,100 zone and trend line. A clear breakthrough above the $42,100 resistance could propel the price towards the $43,250 resistance. If this level is surpassed, the next key resistance awaits at $43,500. Further upwards movement could target the major resistance level at $44,450.
However, if Bitcoin fails to surpass the $42,100 resistance, a continuation of the downward trend may occur. Immediate support is situated around the $40,750 level, with major support at $40,500. A close below this level could trigger bearish momentum, potentially leading to a drop towards the $40,000 support in the near future.
Technical indicators reveal bearish signals as the hourly MACD gains pace in the bearish zone and the hourly RSI dips below the 50 level.
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