27 December 2023
Bitcoin price extended its decline below the $42,650 zone. BTC is showing a few bearish signs and might extend its decline toward the $40,000 support.
Bitcoin seems to be following a bearish path below the $43,500 level.
The price is trading below $43,000 and the 100 hourly Simple moving average.
There is a key bearish trend line forming with resistance near $43,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to move down toward the $40,500 and $40,000 support levels.
Bitcoin Price Dips Further
Bitcoin price struggled to start a fresh increase above the $43,500 and $43,650 resistance levels. BTC formed a short-term top and started a fresh decline below the $43,000 level.
There was a clear move below the $42,500 and $42,300 levels. The price even spiked below the $42,000 level. A low was formed near $41,637 and the price is now attempting a fresh increase. There was a move above the $42,000 level.
Bitcoin price climbed above the 23.6% Fib retracement level of the downward move from the $44,430 swing high to the $41,637 low. It is now trading below $43,000 and the 100 hourly Simple moving average. There is also a key bearish trend line forming with resistance near $43,200 on the hourly chart of the BTC/USD pair.
On the upside, immediate resistance is near the $43,000 level. It is close to the 50% Fib retracement level of the downward move from the $44,430 swing high to the $41,637 low. The first major resistance is forming near the trend line and $43,200.
Source: BTCUSD on TradingView.com
A close above the $43,200 resistance could start a decent move toward the $44,000 level. The next key resistance could be near $44,300, above which BTC could rise toward the $45,000 level. Any more gains might send the price toward $46,500.
More Losses In BTC?
If Bitcoin fails to rise above the $43,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $42,000 level.
The next major support is near $41,620. If there is a move below $41,620, there is a risk of more losses. In the stated case, the price could drop toward the $40,000 support in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – $42,000, followed by $41,620.
Major Resistance Levels – $43,000, $43,200, and $44,300.