Bitcoin’s price experienced another dive, retesting the crucial $40,000 support zone. Despite attempting a fresh increase, BTC is facing hurdles and needs to clear the $42,350 resistance level to enter a positive zone.
Bitcoin is currently trading below $43,600 and the 100 hourly Simple Moving Average. The MACD indicator is gaining pace in the bearish zone, and the Relative Strength Index (RSI) for BTC/USD is below the 30 level, indicating further downside potential.
After dropping below the $43,500 and $43,200 support levels, Bitcoin even fell below $41,200 before finding bullish support. The price then formed a low near $39,999 and is now striving for a fresh increase.
There was a significant development as the price broke above a connecting bearish trend line with resistance near $41,300 on the hourly chart of the BTC/USD pair. However, despite this upswing, Bitcoin is still trading below the 100 hourly SMA and unable to gain significant bullish momentum.
Immediate resistance lies near the $42,000 level, followed by the first major resistance at $42,350. This level coincides with the 50% Fibonacci retracement level of the recent downward move. A close above this resistance might initiate a steady increase, with the next key resistance at $43,000 and potential further upside towards $44,000.
However, if Bitcoin fails to rise above the $42,350 resistance zone, it could face another decline. Immediate support on the downside is found near the $41,200 level, followed by a major support level at $40,550. If the price breaks below $40,000, there is a high risk of a sharp decline towards the $38,500 support level in the near term.
Bitcoin’s price is currently attempting to rebound from the critical $40,000 support level. However, the crypto asset faces several obstacles, including the resistance at $42,350. Failure to overcome this resistance could result in renewed selling pressure and a potential drop to $38,500. Traders and investors should closely monitor these key levels to assess the market’s next direction for Bitcoin.
