Bitcoin Price Faces Rejection – Why BTC Could Revisit $40K Before Fresh Increase

Bitcoin price extended its decline below the $42,650 zone. BTC is showing a few bearish signs and might extend its decline toward the $40,000 support.

• Bitcoin seems to be following a bearish path below the $43,500 level.
• The price is trading below $43,000 and the 100 hourly Simple moving average.
• There is a key bearish trend line forming with resistance near $43,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could continue to move down toward the $40,500 and $40,000 support levels.

Bitcoin Price Dips Further

Bitcoin price struggled to start a fresh increase above the $43,500 and $43,650 resistance levels. BTC formed a short-term top and started a fresh decline below the $43,000 level.

There was a clear move below the $42,500 and $42,300 levels. The price even spiked below the $42,000 level. A low was formed near $41,637 and the price is now attempting a fresh increase. There was a move above the $42,000 level.

Bitcoin price climbed above the 23.6% Fib retracement level of the downward move from the $44,430 swing high to the $41,637 low. It is now trading below $43,000 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.

On the upside, immediate resistance is near the $43,000 level. It is close to the 50% Fib retracement level of the downward move from the $44,430 swing high to the $41,637 low. The first major resistance is forming near the trend line and $43,200.

Source: BTCUSD on TradingView.com

A close above the $43,200 resistance could start a decent move toward the $44,000 level. The next key resistance could be near $44,300, above which BTC could rise toward the $45,000 level. Any more gains might send the price toward $46,500.

More Losses In BTC?

If Bitcoin fails to rise above the $43,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $42,000 level.

The next major support is near $41,620. If there is a move below $41,620, there is a risk of more losses. In the stated case, the price could drop toward the $40,000 support in the near term.

Technical indicators:

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

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

Major Support Levels – $42,000, followed by $41,620.

Major Resistance Levels – $43,000, $43,200, and $44,300.

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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