Bitcoin price once again failed to surpass the crucial $44,000 resistance zone, which has put it at risk of a potential downside break below the $41,500 level. Despite attempting to gain momentum above the $43,200 level, BTC faced resistance and started a fresh decline. As a result, the price is currently trading below $43,000 and the 100 hourly Simple Moving Average. The bearish trend is further confirmed by the formation of a key bearish trend line with resistance near $42,550 on the hourly chart of the BTC/USD pair.
After climbing above the $43,500 level, Bitcoin experienced a brief upside movement, but it struggled to reach the desired $44,000 resistance zone. Consequently, a high was formed near $43,792, and the price began a fresh decline. This decline is evident in the formation of a clear inverted V pattern. The bears gained momentum and managed to push the price below the 50% Fib retracement level of the upward move from the $41,637 swing low to the $43,792 low. Presently, Bitcoin is consolidating below the 61.8% Fib retracement level.
The immediate resistance for Bitcoin is near the $42,500 level, which also coincides with the bearish trend line mentioned earlier. However, the first major resistance lies at $43,000, and a close above this level could potentially push the price further higher. The main hurdle sits at $43,250, and if BTC manages to overcome it, a decent move towards the $43,800 level could be initiated. Further bullish movement may even lead to Bitcoin rising towards the $45,000 level.
On the downside, immediate support can be found near the $42,150 level, followed by a key support at $41,650. A move below this level could result in further losses and increase the risk of Bitcoin dropping towards the $40,500 support in the near term.
Analyzing the technical indicators, the hourly MACD is now gaining momentum in the bearish zone, indicating the likelihood of further downside movement in Bitcoin price. Additionally, the hourly RSI (Relative Strength Index) for BTC/USD is now below the 50 level, indicating a growing bearish sentiment.
Bitcoin price is currently facing strong resistance and is at risk of a downside break below the $41,500 level. Its inability to surpass the $44,000 resistance zone has prompted a fresh decline, with immediate support levels at $42,150 and $41,650. Positive momentum in Bitcoin’s price can only be expected if it manages to overcome crucial resistance levels at $43,000, $43,250, and $43,800. Investing in Bitcoin carries risks, and it is always advisable to conduct thorough research and analysis before making any investment decisions.