HomeBitcoin NewsBitcoin Price Analysis: BTC At Risk of More Downsides Below $42K

Bitcoin Price Analysis: BTC At Risk of More Downsides Below $42K

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  • Bitcoin price started a fresh decline below the $45,000 level against the US Dollar.
  • The price is now trading below $44,500 and the 55 simple moving average (4 hours).
  • There is a major bearish trend line forming with resistance near $44,400 on the 4-hour chart of the BTC/USD pair (data feed from Coinbase).
  • The pair could extend its decline toward the $41,500 and $40,000 levels.

Bitcoin price is declining below $45,000 against the US Dollar. BTC might extend losses if it stays below the $45,250 resistance zone.

Bitcoin Price Analysis

Bitcoin price started a fresh decline below the $46,500 zone. There was a steady decline below the $45,000 and $44,500 levels to enter again in a bearish zone.

The bears even pushed the price below the $44,200 and $43,500 support levels. Finally, the price tested the $41,450 zone. A low is formed near $41,444 and the price is now consolidating losses. It is trading below $45,000 and the 55 simple moving average (4 hours).

There is also a major bearish trend line forming with resistance near $44,400 on the 4-hour chart of the BTC/USD pair. Immediate resistance on the upside is near the $43,260 level and 23.6% Fib retracement level of the downward move from the $49,102 swing high to the $41,444 low.

The next major resistance might be near the $44,400 zone or the trend line. A clear move above the $44,400 level might send the price toward $45,250. It is close to the 50% Fib retracement level of the downward move from the $49,102 swing high to the $41,444 low.

The main resistance is now forming near the $47,200 zone, above which the price might rise toward the $48,500 level. Any more gains might push the price toward the $50,000 zone.

If there is no upside break, the price might decline below the $42,000 level. The first major support is near $41,450. The next key support is near the $41,000 level, below which the price might accelerate lower. In the stated case, the price could decline toward the $40,000 level.

Bitcoin Price
Bitcoin Price

Looking at the chart, Bitcoin price is clearly trading below $45,000 and the 55 simple moving average (4 hours). Overall, the price could extend its decline toward the $41,500 and $40,000 levels.

Technical Indicators

4 hours MACD – The MACD is now losing momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.

Key Support Levels – $41,500 and $40,000.

Key Resistance Levels – $43,260, $44,400, and $45,250.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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