Bitcoin Price Showing Bearish Signs: Will It Fall Below $40,000?

Bitcoin Price Showing Bearish Signs: Will It Fall Below $40,000?

Bitcoin price has recently started a fresh decline, dipping below the crucial support zone of $41,250. With bearish signs becoming more prominent, there is a looming possibility of it plunging further below the $40,000 mark.

Bitcoin’s price has struggled to maintain stability above the $42,200 support zone. While it initially made attempts to overcome several obstacles, it eventually succumbed to a fresh decline below the $42,000 mark. It further slipped below the $41,500 and $41,250 support levels, with a momentary dive below $40,500.

After hitting a low of $40,369, Bitcoin is now in a phase of consolidating its losses. It is currently hovering around the 23.6% Fibonacci retracement level, between the swing high of $42,260 and the recent low of $40,369. Furthermore, Bitcoin is trading below the 100-hourly simple moving average and is facing immediate resistance near the $41,000 mark.

On the hourly chart of the BTC/USD pair, there is a significant bearish trend line forming with resistance close to $41,320. This trend line corresponds to the 50% Fibonacci retracement level of the recent decline from the swing high of $42,260 to the low of $40,369. A clear breakthrough above the $41,320 resistance level could potentially push the price towards the next resistance point at $42,000, followed by $42,200. However, if the price fails to surpass the $42,200 level, it might continue its downward movement.

If Bitcoin fails to sustain a rise above the $42,200 resistance zone, a further downward trajectory is anticipated. Immediate support on the downside is expected around the $40,500 level, while the next major support level stands at $40,000. A close below $40,000 could enhance bearish momentum, potentially leading the price towards the $38,500 support level in the near future.

The hourly MACD (Moving Average Convergence Divergence) indicator indicates an ongoing acceleration in the bearish zone, affirming the prevailing downtrend. Additionally, the hourly RSI (Relative Strength Index) for BTC/USD is now positioned below the crucial 50 level, underscoring the increasing bearish sentiment.

It is important to note that the information presented in this article is solely for educational purposes and does not represent the opinions of NewsBTC on whether to buy, sell, or hold any investments. Investing in Bitcoin, like any other asset, carries inherent risks. Consequently, conducting thorough research and due diligence is crucial when making investment decisions. Please use the information provided on this website at your own risk.

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