Bitcoin is still struggling below $41,500 against the US Dollar. BTC remains at a risk of more downsides below the $39,000 support zone at the time of scripting.
Bitcoin is showing bearish signs below the $40,500 and $41,500.
The price is now trading below $40,500 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $40,180 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could extend its decline if there is a clear move below the $39,000 support zone.
Read More About News BTC Analysis: Bitcoin Value Bears Keep Moving, Why There’s Risk of More Losses
Bitcoin Price Resumes Decline
Bitcoin price remained below the key $41,500 resistance zone. BTC seems to be trading in a range above the $39,000 level and below the $41,500 resistance zone.
The last swing low was formed near $39,600 before the price started an upside correction. There was a move above the $40,000 resistance zone. The price climbed above the 23.6% Fib retracement level of the downward move from the $41,548 swing high to $39,600 low.
However, the price faced a strong resistance near the $40,500 level and the 100 hourly simple moving average. Bitcoin also struggled near the 50% Fib retracement level of the downward move from the $41,548 swing high to the $39,600 low.
There is also a key bearish trend line forming with resistance near $40,180 on the hourly chart of the BTC/USD pair. Immediate resistance on the upside is near the $40,200 level.
The next key resistance could be $40,380 and the 100-hourly SMA. To start a recovery wave, the price must clear the $40,380 zone and the 100 hourly SMA. In the stated case, the price may perhaps rise towards the $40,850 resistance zone. Any more gains could set the pace for a move towards the main $41,500 hurdle in the near term.
Expect More Losses in BTC?
If bitcoin fails to clear the $40,180 resistance zone, it could start another decline. Immediate support on the downside is near the $39,600 level.
The next major support is seen near the $39,180 level. A downside break below the $39,180 support zone could accelerate losses. In the stated case, the price could decline towards the $38,800 level or even $38,500.
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