Bitcoin Price Turns Red, Why BTC Could Tumble Below $40K 22.01.24

Bitcoin price started a fresh decline below the $41,250 support zone. BTC is showing bearish signs and might decline heavily below the $40,000 support zone.

• Bitcoin price is gaining bearish momentum below the $41,500 zone.
• The price is trading below $41,500 and the 100 hourly Simple moving average.
• There is a key bearish trend line forming with resistance near $41,320 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair is now at risk of more downsides if it breaks the $40,000 support zone.

Bitcoin Price Resumes Downtrend

Bitcoin price struggled to stay above the $42,200 support zone. However, BTC failed to clear many hurdles and started a fresh decline below the $42,000 level.

There was a move below the $41,500 and $41,250 support levels. The price even spiked below the $40,500 level. A low is formed near $40,369 and the price is now consolidating losses. It is now trading near the 23.6% Fib retracement level of the recent drop from the $42,260 swing high to the $40,369 low.

Bitcoin is now trading below $41,500 and the 100 hourly Simple moving average. Immediate resistance is near the $41,000 level. The first major resistance is near the $41,250 level. There is also a key bearish trend line forming with resistance near $41,320 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

The trend line is close to the 50% Fib retracement level of the recent drop from the $42,260 swing high to the $40,369 low. A clear move above the $41,320 resistance could send the price toward the $42,000 resistance. The next resistance is now forming near the $42,200 level. A close above the $42,200 level could push the price further higher. The next major resistance sits at $43,250.

More Losses In BTC?

If Bitcoin fails to rise above the $42,200 resistance zone, it could continue to move down. Immediate support on the downside is near the $40,500 level.

The next major support is $40,000. If there is a close below $40,000, the price could gain bearish momentum. In the stated case, the price could drop toward the $38,500 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

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

Major Support Levels – $40,500, followed by $40,000.

Major Resistance Levels – $41,500, $42,000, and $42,200.

 

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