The price of Bitcoin has extended its fall and tested the original $ 40,750 support against the US dollar. BTC may start a new rise as long as it is above $ 40,750.
- Bitcoin extended its fall below the $ 42,000 and $ 41,200 support levels.
- Prices are now trading below the simple average of $ 42,500 and 100 hours.
- The BTC / USD pair (data feed from Kraken) is forming a large bearish trend line with resistance around $ 42,100 per hour on the chart.
- The pair could start a good growth as long as it stays above the 40,750 support zone.
Bitcoin Price Test Key Support
The price of Bitcoin has remained in a bearish zone below ,500 42,500. BTC extended its fall below $ 42,000 and stood below the 100-hour simple moving average.
There was a break below the $ 41,200 level, but the bulls protected the $ 40,750 support zone. A low formed near $ 40,772 and prices are now rising. It surpassed the levels of $ 41,200 and $ 41,500. The recent decline from the $ 44,327 swing high to the 40,774 low was a break above the 23.6% Fib retracement level.
Bitcoin is now trading below 42 42,500 and a simple moving average of 100 hours. Side upward, an immediate resistance near the $ 42,000 level.
The first major resistance is near the $ 42,100 level. The hourly chart of the BTC / USD pair also has a large bearish trend line with resistance near $ 42,100. The next major resistance is near the $ 42,600 level and the simple simple average of 100 hours.
Source: BTCUSD on TradingView.com
The 50% Fib retracement level of the recent fall from $ 44,327 swing high to $ 40,774 is also close to the $ 42,550 level. A price above the $ 42,600 level could push further. In the case described, it could test the 43,500 resistance.
More downsides at BTC?
If Bitcoin fails to clear the $ 42,100 resistance zone, it could go down. An immediate support on the downside is close to the 41,200 level.
Major breakdown support is close to the $ 40,750 area. A price below the $ 40,750 support level could lead to a 40,000 zone. Any further damage could lead to a big fall towards $ 38,000.
MACD per hour – MACD is slowly losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI of BTC / USD is now moving towards the 50 level.
Key Support Level – $ 41,200, then $ 40,750.
Major resistance levels – $ 42,000, $ 42,100 and $ 42,600.