Bitcoin price peaked near the $49,000 resistance zone. BTC started a sharp decline and broke many key support levels at $45,000 to enter a short-term bearish zone.
- Bitcoin peaked near $49,000 and began a steady decline.
- The price is below $43,500 and the 100 hourly simple moving average.
- A connecting bearish trend line is forming with resistance near $42,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a fresh decline if it breaks below the $41,500 support zone.
Bitcoin price takes a big hit
Bitcoin price failed to test the $50,000 resistance zone. BTC peaked near $49,000 and began a sharp decline. There was a sharp decline below the $48,000 and $46,500 support levels.
The bears even pushed the price below the $45,000 support zone. It fell over 12% and tested the $41,500 support zone. A low was formed at $41,476 and the price triggered a recovery wave. There was a slight increase above the $42,000 resistance zone.
However, Bitcoin is still trading below $43,500 and the 100 hourly simple moving average. On the other side, the immediate resistance is near the $42,800 level.
There is also a connecting bearish trend line forming with resistance near $42,850 on the hourly chart of the BTC/USD pair. The first major resistance lies at $43,250 or the 23.6% Fib retracement level of the downward move from the swing high at $49,000 to the low at $41,476.
Source: BTCUSD on TradingView.com
A clear move above the $43,250 resistance could propel the price towards the $44,000 resistance. The next resistance is now forming near the $45,200 level. It is near the 50% Fib retracement level of the downward move from the swing high at $49,000 to the low at $41,476. A close above the $45,300 level could trigger a sharp increase and push the price higher. The next major resistance is at $47,000.
More losses on BTC?
If Bitcoin fails to rise above the $43,250 resistance zone, a fresh decline could occur. The immediate downside support is near the $42,120 level.
The next major support is at $41,500. A break below $41,500 could see the price gain bearish momentum. In the mentioned case, the price could fall towards the $40,000 support in the short 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.
Key Support Levels – $42,120 followed by $41,500.
Major resistance levels – $42,800, $43,250 and $44,000.
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