HomeBitcoin NewsBitcoin Price Analysis: BTC Takes Hit, Can This Support Hold?

Bitcoin Price Analysis: BTC Takes Hit, Can This Support Hold?

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  • Bitcoin price started a fresh decline below the $42,000 level against the US Dollar.
  • The price is now trading below $42,500 and the 55 simple moving average (4 hours).
  • There are two bearish trend lines forming with resistance near $40,950 and $41,650 on the 4-hour chart of the BTC/USD pair (data feed from Coinbase).
  • The pair could face heavy resistance near the $41,500 zone in the near term.

Bitcoin price is declining below $42,000 against the US Dollar. BTC might extend losses if it stays below the $41,650 resistance zone.

Bitcoin Price Analysis

Bitcoin price started a fresh decline below the $42,500 zone. There was a steady decline below the $42,000 and $41,500 levels to move further in a bearish zone.

The bears even pushed the price below the $40,200 and $40,000 support levels. Finally, the price tested the $38,500 zone. A low is formed near $38,501 and the price is now consolidating losses. It is trading below $42,000 and the 55 simple moving average (4 hours).

There are two bearish trend lines forming with resistance near $40,950 and $41,650 on the 4-hour chart of the BTC/USD pair. Immediate resistance on the upside is near the $41,000 level and 50% Fib retracement level of the downward move from the $43,569 swing high to the $38,501 low.

The next major resistance might be near the $41,500 zone or the trend line. It is near the 61.8% Fib retracement level of the downward move from the $43,569 swing high to the $38,501 low.

A clear move above the $41,650 level might send the price toward $42,250. The main resistance is now forming near the $42,000 zone, above which the price might rise toward the $43,500 level. Any more gains might push the price toward the $45,000 zone.

If there is no upside break, the price might decline below the $39,000 level. The first major support is near $38,500. The next key support is near the $37,800 level, below which the price might accelerate lower. In the stated case, the price could decline toward the $36,500 level.

Bitcoin Price
Bitcoin Price

Looking at the chart, Bitcoin price is clearly trading below $42,000 and the 55 simple moving average (4 hours). Overall, the price could face heavy resistance near the $41,500 zone in the near term.

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 – $39,000 and $38,500.

Key Resistance Levels – $40,900, $41,650, and $42,000.

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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