Bitcoin Price Struggles to Break Resistance, Risks Another Decline

Bitcoin Price Struggles to Break Resistance, Risks Another Decline

Bitcoin price has been facing significant challenges in its attempt to break above the $43,500 resistance zone. With the presence of the 100 hourly Simple Moving Average (SMA), the leading cryptocurrency risks another decline if it fails to surpass this critical level. Traders and investors are closely monitoring the market to assess the potential direction of Bitcoin in the near term.

The current price decline started from the $49,000 resistance zone, a level that Bitcoin was unable to break. As a result, it traded below the key support levels of $46,500 and $45,000, which pushed it into a short-term bearish zone. Eventually, the price dipped below the $42,500 support zone before finding support near $41,476. Although Bitcoin has recovered a few points above the $42,000 level, it remains below $43,250 and the 100 hourly SMA.

On the hourly chart of the BTC/USD pair, there is a clear formation of a bearish channel, with resistance near $43,050. This channel adds more selling pressure to the market and increases the likelihood of a fresh decline if Bitcoin fails to stay above the $43,250 resistance zone. With the current price consolidation and lack of bullish momentum, traders need to remain cautious and closely monitor the market conditions.

In order for Bitcoin to reverse its bearish trend, it needs to surpass several key resistance levels. The first major resistance is at $43,250, which also aligns with the 100 hourly SMA. A clear breakthrough above this level could potentially send the price towards the $44,450 resistance. The next resistance level to watch is around $45,250, which corresponds to the 50% Fib retracement level of the recent drop from the swing high of $49,000 to the low of $41,476. A decisive move above $45,250 might indicate a strong increase in buying pressure and could potentially push the price towards the next major resistance at $47,000.

Downside Risks and Immediate Support Levels

However, if Bitcoin fails to overcome the $43,250 resistance zone, it is likely to experience further downside. The immediate support on the downside is near $42,120, followed by a more critical support level at $41,500. A close below $41,500 might trigger a shift in market sentiment and result in increased bearish momentum. In such a scenario, the price could potentially drop towards the psychologically significant support level of $40,000 in the near term.

Technical Indicators

The Hourly Moving Average Convergence Divergence (MACD) for BTC/USD is currently losing its momentum in the bearish zone. Additionally, the Relative Strength Index (RSI) has fallen below the 50 level, signaling a potential weakening of bullish momentum. Traders should take these technical indicators into consideration when making investment decisions.

Bitcoin price continues to face challenges in breaking above the $43,500 resistance zone. Failure to surpass this level could lead to another decline, with immediate support levels at $42,120 and $41,500. On the other hand, a clear breakthrough above the $43,250 resistance could pave the way for a potential upward rally towards the $44,450 and $47,000 resistance levels. Traders and investors are advised to carefully evaluate market conditions and conduct their own research before making any investment decisions. As with any investment, there are risks involved, and it is important to exercise caution and manage risk effectively.


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