Bitcoin Price Faces Uphill Task, Risk of Additional Losses Below $42K Looms
Bitcoin price continues to struggle below the $43,250 resistance zone, with the risk of further losses looming if it remains below $43,500 for an extended period. Despite a consolidation phase starting from the $41,500 zone and a slight recovery, bears have been active near the $43,250 and $43,500 levels.
The latest swing high was around $43,568 before a fresh decline took place. Bitcoin saw a clear move below the $43,000 level and broke a significant rising channel with support near $42,880 on the hourly chart of BTC/USD.
At present, Bitcoin is trading below $43,250 as well as the 100 hourly Simple Moving Average (SMA). However, it is currently attempting a recovery wave above the $42,500 level. The immediate resistance on the upside is near $42,800, close to the 50% Fibonacci retracement level of the recent decline from the $43,568 swing high to the $42,190 low. The first major resistance sits at $43,000, followed by the main resistance forming near $43,250.
Additionally, the 76.4% Fibonacci retracement level of the recent decline from $43,568 swing high to $42,190 low is also around $43,250. If the price successfully breaks above the $43,250 resistance, it could surge towards the $44,000 resistance. Subsequently, the next resistance level would be around $44,250, with the following major resistance situated at $45,000.
However, failure to rise above the $43,250 resistance zone might trigger a fresh decline. The immediate support on the downside is near $42,120, with the next major support at $41,450. A close below $41,450 could initiate bearish momentum, potentially causing the price to drop towards the $40,000 support level in the near term.
Technical indicators are signaling a bearish trend, with the hourly MACD gaining pace in the bearish zone and the hourly RSI for BTC/USD now below the 50 level.
As Bitcoin’s price faces an uphill task and the risk of further losses below $42,000 looms, investors and traders are advised to closely monitor key support and resistance levels for potential entry or exit points.
Please note that cryptocurrency investments carry a certain level of risk, and it is essential to conduct thorough research and seek professional advice before making any financial decisions.
The cryptocurrency market remains volatile, and the opinions and statements presented in this article should not be taken as financial advice.
