• Bitcoin price extended decline below the $40,000 zone against the US Dollar.
  • The price is now trading above $40,000 and the 55 simple moving average (4-hours).
  • There was a break above a major bearish trend line with resistance near $41,000 on the 4-hours chart of the BTC/USD pair (data feed from Coinbase).
  • The pair could start a steady increase if there is a move above the $42,000 level.

Bitcoin price is recovering above $40,000 against the US Dollar. BTC could recover further if it breaks the $42,000 and $43,000 resistance levels.

Bitcoin Price Analysis

Bitcoin price failed to clear the $43,000 resistance zone. As a result, BTC started a fresh decline and traded below the key $41,500 support zone.

There was a clear move below the $40,000 level and the 55 simple moving average (4-hours). The price even spiked below the $39,000 level. A low is formed near $38,550 and the price is now correcting losses. There was a move above the $40,000 resistance zone and the 55 simple moving average (4-hours).

There was a break above a major bearish trend line with resistance near $41,000 on the 4-hours chart of the BTC/USD pair. The pair surpassed the 23.6% Fib retracement level of the downward move from the $47,470 swing high to $38,550 low.

An immediate resistance on the upside is near the $42,000 level. The next major resistance on the upside is near the $43,000 level. It is near the 50% Fib retracement level of the downward move from the $47,470 swing high to $38,550 low.

To start another increase, the price must settle above the $43,000 level in the near term. If there is no upside break, the price might start a fresh decline below $40,500. The next key support is near the $40,000 level. Any more losses might call for a test of the key $38,500 support zone, where the bulls might take a stand.

Bitcoin Price

Bitcoin Price

Looking at the chart, bitcoin price is clearly trading above $40,000 and the 55 simple moving average (4-hours). Overall, the price could start a steady increase if there is a move above the $42,000 level.

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 above the 50 level.

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

Key Resistance Levels – $42,000, $43,000 and $44,200.

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