Bitcoin Near Crucial Juncture, Why Bulls Could Aim Fresh Increase

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Bitcoin price extended its decline and tested the key $40,750 support against the US Dollar. BTC could start a fresh increase as long as it is above $40,750.

  • Bitcoin extended its decline below the $42,000 and $41,200 support levels.
  • The price is now trading below $42,500 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $42,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a decent increase as long as it is above the $40,750 support zone.

Bitcoin Price Tests Key Support

Bitcoin price remained in a bearish zone below the $42,500 level. BTC extended its decline below $42,000 and settled below the 100 hourly simple moving average.

There was a break below the $41,200 level, but the bulls protected the $40,750 support zone. A low is formed near $40,772 and the price is now rising. It surpassed the $41,200 and $41,500 levels. There was a break above the 23.6% Fib retracement level of the recent decline from the $44,327 swing high to $40,774 low.

Bitcoin is now trading below $42,500 and the 100 hourly simple moving average. On the upside, an immediate resistance is near the $42,000 level.

The first major resistance is near the $42,100 level. There is also a major bearish trend line forming with resistance near $42,100 on the hourly chart of the BTC/USD pair. The next major resistance is near the $42,600 level and the 100 hourly simple moving average.

Bitcoin Price

Source: BTCUSD on TradingView.com

The 50% Fib retracement level of the recent decline from the $44,327 swing high to $40,774 low is also near the $42,550 level. A close above the $42,600 level could push the price further higher. In the stated case, it could test the $43,500 resistance.

More Downsides In BTC?

If bitcoin fails to clear the $42,100 resistance zone, it could continue to move down. An immediate support on the downside is near the $41,200 level.

The main breakdown support is near the $40,750 zone. A close below the $40,750 support level might lead the price towards the $40,000 zone. Any more losses could trigger a larger decline towards $38,000.

Technical indicators:

Hourly MACD – The MACD is slowly losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now rising towards the 50 level.

Major Support Levels – $41,200, followed by $40,750.

Major Resistance Levels – $42,000, $42,100 and $42,600.

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Disclaimer: The views expressed in The Coin Times are solely those of the authors cited. It does not constitute The Coin Times recommendation to buy, sell, or hold any investment. Before making any financial decisions, it is recommended that you undertake your own research. Use the information supplied at your own risk. For additional information, please see the Disclaimer.

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