Bitcoin Shrinks Gains, Support Changed Resistance At $41K


Bitcoin extended gains above $42,500 against the US dollar. BTC struggled near $43,000 and started a sharp downside correction.

Bitcoin started falling again after it failed to clear the $43,000 resistance zone. The price is now trading below $41,000 and the 100 hourly simple moving average. There was a break below a major bullish trendline with support near $41,250 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could attempt another rise, but the $41,000 resistance is key.

Bitcoin Price Drops

Bitcoin price remained well above the $41,500 resistance zone. BTC gained pace and cleared the $42,000 resistance zone. It even moved above $42,500 and the 100 hourly simple moving average.

However, the bulls failed to push the price above the $43,000 level. It peaked near $42,950 and the price reacted to the downtrend. There was a sharp move below the $42,000 level. In addition, there was a break below a major bullish trendline with support near $41,250 on the hourly chart of the BTC/USD pair.

There was a break below the 50% Fib retracement level from the upward move from the $38,750 swing low to the $42,950 high. Bitcoin is now trading below $41,000 and the 100 hourly simple moving average.

The price is now consolidating above the 61.8% Fib retracement level from the upward move from the $38,750 swing low to the $42,950 high. An immediate resistance on the upside is near the $40,750 level. The next key resistance could be $40,950 and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

To start a strong upward move, the price needs to move above the $41,000 zone and the 100 hourly simple moving average. If the bulls succeed, the price could climb towards the $41,800 resistance zone.

Lose more in BTC?

If bitcoin does not clear the $41,000 resistance zone, it could continue to fall. An immediate support on the downside is near the USD 40,250 level.

The next major support is seen near the USD 40,000 level. A downward breach below the $40,000 zone could send the price towards the $39,250 support zone.

Technical indicators:

Hourly MACD – The MACD is slowly losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Key support levels – $40,250, followed by $40,000.

Major resistance levels – $40,750, $41,000 and $41,800.

Leave a Reply

Your email address will not be published.