Bitcoin (BTC) has faced a challenging time attempting to break through the $43,750 resistance level. As a result, the digital currency is now experiencing a decline, and analysts predict that more losses could be in store if the price drops below the $41,800 mark. This article takes an in-depth look at the current state of Bitcoin’s price movement and explores the potential future scenarios for the cryptocurrency.
Bitcoin’s price has been slowly moving lower from the resistance zone of $43,750. The cryptocurrency is now trading below $42,800 and the 100 hourly Simple Moving Average (SMA). This downturn was precipitated by a break below a connecting bullish trend line with support near $42,500 on the BTC/USD pair’s hourly chart.
Bitcoin bulls attempted to push the price above the $43,500 resistance zone. While they managed to clear this hurdle, their efforts were thwarted near the $43,800 area. Despite multiple attempts, the bulls failed to breach this level, resulting in a fresh decline for BTC. The price dropped below $43,000, further confirming the bearish sentiment.
Following the decline, Bitcoin’s price consolidated losses, with a low point near $41,888. The immediate resistance now lies around the $42,350 level. This resistance level corresponds to the 23.6% Fibonacci retracement level of the downward move, ranging from the swing high of $43,742 to the low of $41,888. If Bitcoin manages to break through this resistance, the next key level to watch for is $42,800 or the 50% Fibonacci retracement level.
Possible Ascending Trajectory
If the price successfully surpasses the $42,800 resistance zone, there is a chance for a decent increase. Bitcoin might then target the $43,200 level, followed by the $43,800 resistance. Additionally, breaking above $45,000 could propel the price even higher, with the next major resistance point around $46,500.
However, if Bitcoin fails to rise above the $42,800 resistance level, further downward movement could occur. Immediate support is anticipated around the $41,800 level, with the first major support sitting at $41,200. Should the price continue to slide, the main support to watch for is $40,950. If Bitcoin closes below this level, it may gain bearish momentum and potentially dive towards the crucial $40,000 support mark.
Analyzing the technical indicators, the MACD (Moving Average Convergence Divergence) for Bitcoin on the hourly timeframe suggests a slowdown in bearish momentum. Conversely, the Relative Strength Index (RSI) reveals that BTC/USD is now below the 50-level, indicating bearish sentiment in the market.
Bitcoin price is currently struggling to surpass the $43,750 resistance level. With its decline below $42,800, there is a possibility of further losses in the near future, especially if the price drops below $41,800. However, if Bitcoin manages to break through the resistance levels, an upward trajectory is plausible, with the potential for reaching $43,800 or even higher. Traders and investors must exercise caution, conduct thorough research, and consider the associated risks before making any investment decisions involving Bitcoin or any other cryptocurrency.
Disclaimer: This article is intended for educational purposes only and should not be considered as financial advice. The opinions expressed in this article are solely those of the author and do not represent the views of NewsBTC. Investing in cryptocurrencies carries inherent risks, and readers are encouraged to conduct their own research and exercise judgment when making investment decisions.