Bitcoin Price Faces Resistance, Risks Downside Break

Bitcoin Price Faces Resistance, Risks Downside Break

Bitcoin’s price has once again failed to clear the $44,000 resistance zone, signaling potential downside risks. The cryptocurrency is slowly declining and may be at risk of a downside break below the $41,500 level. Despite a fresh attempt to gain pace above the $43,200 level, Bitcoin struggled to reach the $44,000 resistance zone and formed a clear inverted V pattern, leading to a fresh decline.

Bitcoin is currently trading below $43,000 and the 100 hourly Simple Moving Average, consolidating below the 61.8% Fibonacci retracement level of the upward move from the $41,637 swing low to the $43,792 low. Immediate resistance is near the $42,500 level, with a key bearish trend line forming around $42,550. The first major resistance level is $43,000, and a close above this level could push the price further higher.

If Bitcoin fails to rise above the $43,000 resistance zone, it could continue to move down. Immediate support on the downside is near the $42,150 level, followed by a major support level near $41,650. A move below $41,650 would indicate a risk of further losses, with the price potentially dropping towards the $40,500 support in the near term.

The hourly Moving Average Convergence Divergence (MACD) for BTC/USD is currently gaining pace in the bearish zone, indicating a potential downward movement. The Relative Strength Index (RSI) is now below the 50 level, further supporting the bearish sentiment.

Disclaimer

It’s important to note that this article is provided for educational purposes only and does not represent the opinions of NewsBTC on whether to buy, sell, or hold any investments. Investing in cryptocurrencies carries risks, and it is advised to conduct your own research before making any investment decisions. Users should use the information provided on this website entirely at their own risk.

Bitcoin’s price is currently facing resistance and may be at risk of a downside break. The failure to clear the $44,000 resistance zone has resulted in a fresh decline and a potential further drop if key support levels are broken. Technical indicators suggest a bearish movement, with the MACD in the bearish zone and the RSI below 50. Investors and traders should exercise caution and conduct thorough research before making any investment decisions in the volatile cryptocurrency market.

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