Recently, Bitcoin’s value took another dip, falling below the $42,650 mark. Currently, it’s showing signs that suggest a potential further decline, possibly hitting the $40,000 support level.
The trend for Bitcoin is looking somewhat bleak, especially below the $43,500 benchmark. Right now, the cryptocurrency is trading under $43,000 and is below the 100 hourly Simple Moving Average. Additionally, there’s a noticeable bearish trend line forming, with resistance hovering around $43,200 on the hourly BTC/USD chart.
This downward trajectory might lead Bitcoin towards the support levels of $40,500 and $40,000.
Further Downturn for Bitcoin?
Bitcoin’s recent attempts to rally above the $43,500 and $43,650 resistance levels didn’t pan out. Instead, it experienced a fresh drop below $43,000. The decline was significant, going past the $42,500 and $42,300 levels and even briefly dipping below $42,000. The lowest point reached was around $41,637, but there’s been a slight rebound since then.
Despite a minor recovery above $42,000, Bitcoin still faces challenges. It managed to climb over the 23.6% Fib retracement level of the recent drop, but it remains below $43,000 and the crucial 100 hourly Simple Moving Average. The same bearish trend line is also in play here.
Looking upwards, there’s immediate resistance near $43,000, aligning with the 50% Fib retracement level. The first major resistance is around the trend line at about $43,200.
If Bitcoin can push past the $43,200 resistance, there’s a potential for movement towards $44,000. Beyond that, the next significant resistance is near $44,300, which, if breached, could lead Bitcoin towards $45,000 and possibly even $46,500.
What If Bitcoin Doesn’t Recover?
However, if Bitcoin fails to break through the $43,000 resistance zone, we could see a further decline. Immediate support is found near $42,000.
Should the value slip below $41,620, it could signal a steeper drop, possibly reaching the $40,000 support in the near future.
Key Technical Indicators:
- Hourly MACD – Currently showing a slowdown in the bearish zone.
- Hourly RSI (Relative Strength Index) – Now below the 50 level.
Important Levels to Watch:
- Major Support Levels – $42,000, followed by $41,620.
- Major Resistance Levels – $43,000, $43,200, and $44,300.
Disclaimer: This overview is for informational purposes and doesn’t constitute investment advice. Investing in cryptocurrencies involves risks, and it’s always recommended to do thorough research before making any investment decisions.
