In the fluctuating world of cryptocurrency, Bitcoin’s value has once again fallen short of breaking through the steadfast resistance level of $43,500. Initiating a downward trajectory, the digital currency stands on the precipice of potentially revisiting the $40,000 support threshold.
Currently, Bitcoin moves with uncertainty below the $42,000 support zone. The digital asset is trading under this key level as well as beneath the 100 hourly Simple Moving Average, indicative of a bearish pattern in the short-term trend. A distinct bearish trend line has taken shape, presenting resistance near $41,800 on the hourly chart for the BTC/USD pair, with market data sourced from Kraken.
Despite a vigorous attempt to climb beyond the $43,000 benchmark, Bitcoin faced a steadfast resistance that ultimately led to a rejection, capping the recent high at around $43,421 before giving up its gains. A notable descent ensued, as Bitcoin’s value slipped past $42,200 and $42,000 support levels. This decline went so far as to surpass the 50% Fibonacci retracement level of the previous upward movement, traveling from the $40,605 swing low to the $43,421 high.
Immediate resistance on the ascent hovers near the $41,250 mark. The primary resistance, meanwhile, is taking form near the $41,800 level, aligning with the emerging trend line. A decisive close above this resistance could signal the beginning of a sustained upward movement. Should this scenario unfold, further resistance could be encountered at $42,250, with potential to advance toward $42,800. A breakthrough above $42,800 might well pave the path for a retest of the $43,500 echelon.
The failure to surpass the $41,800 resistance zone, on the other hand, could presage further slippage. The immediate support beneath Bitcoin lingers near the $40,600 mark or, alternatively, aligns with the most recent swing low.
Moreover, a significant support level is stationed around $40,000, which lies in proximity to the 1.236 Fibonacci extension level of the aforementioned swing low to high trajectory. A drop below this could lead to the currency testing the waters at the $39,500 zone. Any further decline, particularly under $39,500, could precipitate augmented losses, potentially pushing Bitcoin toward a support level near $38,400 in the near future.
Technical indicators shine a light on the crypto’s current momentum, with the Hourly MACD now accelerating within the bearish zone and the Hourly RSI (Relative Strength Index) falling below the 20 level.
Key support levels to watch include $40,600, closely followed by the pivotal $40,000 mark. In terms of resistance, eyes are on $41,250, $41,800, and subsequently $42,250.
