Bitcoin Price Analysis: BTC Takes Hit, Can This Support Hold?

• Bitcoin price started a fresh decline below the $42,000 level against the US Dollar.
• The price is now trading below $42,500 and the 55 simple moving average (4 hours).
• There are two bearish trend lines forming with resistance near $40,950 and $41,650 on the 4-hour chart of the BTC/USD pair (data feed from Coinbase).
• The pair could face heavy resistance near the $41,500 zone in the near term.

Bitcoin price is declining below $42,000 against the US Dollar. BTC might extend losses if it stays below the $41,650 resistance zone.

Bitcoin Price Analysis

Bitcoin price started a fresh decline below the $42,500 zone. There was a steady decline below the $42,000 and $41,500 levels to move further in a bearish zone.

The bears even pushed the price below the $40,200 and $40,000 support levels. Finally, the price tested the $38,500 zone. A low is formed near $38,501 and the price is now consolidating losses. It is trading below $42,000 and the 55 simple moving average (4 hours).

There are two bearish trend lines forming with resistance near $40,950 and $41,650 on the 4-hour chart of the BTC/USD pair. Immediate resistance on the upside is near the $41,000 level and 50% Fib retracement level of the downward move from the $43,569 swing high to the $38,501 low.

The next major resistance might be near the $41,500 zone or the trend line. It is near the 61.8% Fib retracement level of the downward move from the $43,569 swing high to the $38,501 low.

A clear move above the $41,650 level might send the price toward $42,250. The main resistance is now forming near the $42,000 zone, above which the price might rise toward the $43,500 level. Any more gains might push the price toward the $45,000 zone.

If there is no upside break, the price might decline below the $39,000 level. The first major support is near $38,500. The next key support is near the $37,800 level, below which the price might accelerate lower. In the stated case, the price could decline toward the $36,500 level.

Looking at the chart, Bitcoin price is clearly trading below $42,000 and the 55 simple moving average (4 hours). Overall, the price could face heavy resistance near the $41,500 zone in the near term.

Technical Indicators

4 hours MACD – The MACD is now losing momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.

Key Support Levels – $39,000 and $38,500.

Key Resistance Levels – $40,900, $41,650, and $42,000.