Bitcoin price extended its decline below the $40,000 level against the US Dollar. BTC is now recovering and it could climb higher if it clears the $42,500 resistance.
Bitcoin price failed to recover above the $43,500 and $43,650 resistance levels. As a result, there was a fresh decline in BTC below the $42,000 support zone.
The price extended its decline below the $40,200 and $40,000 support levels. A was formed near $39,579 before the price started an upside correction. It is back above the $40,000 and $41,000 levels. However, the price is still trading below $43,000 and the 100 hourly simple moving average.
Bitcoin surpassed the 50% Fib retracement level of the recent decline from the $43,624 swing high to $39,579 low. It is now consolidating below the $42,500 resistance.
There is also a key bearish trend line forming with resistance near $42,500 on the hourly chart of the BTC/USD pair. The trend line is close to the 76.4% Fib retracement level of the recent decline from the $43,624 swing high to $39,579 low.
Source: BTCUSD on TradingView.com
To start a strong recovery, the price must clear the $42,500 resistance. The next major resistance is near the $43,000 zone, above which the price could rise towards the $45,000 resistance.
If bitcoin fails to clear the $43,000 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $41,600 level.
The next major support is near the $41,000 zone. A downside break below the $41,000 zone could trigger a fresh decline towards the $40,000 level or even $39,500. Any more losses may possibly lead the price towards the $38,500 level in the near term.
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is just below the 50 level.
Major Support Levels – $41,000, followed by $40,000.
Major Resistance Levels – $42,500, $43,000 and $45,000.
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