News BTC Analysis: Bitcoin Trims Gains, Support Turned Resistance At $41K

Date:

Bitcoin trims gains above $42,500 against the US Dollar. BTC struggled near $43,000 and started a sharp downside correction at the time of scripting.

Bitcoin started another decline after it failed to clear the $43,000 resistance zone. 

Now the price is trading on the average below $41,000 and the 100 hourly simple moving average.

There was a break below a primary bullish trend line with support near $41,250 on the hourly chart of the BTC/USD pair at the time of writing. Further, the pair may attempt a new increase, but the $41,000 resistance holds the key.

BTC Dips

Bitcoin remained well bid above the $41,500 resistance zone. Bitcoin trims gains pace and cleared the $42,000 resistance zone. Further, it even moved above $42,500 and the 100 hourly simple moving average.

Despite that, bulls failed to push the price above the $43,000 level. A high was formed near $42,950, and the price reacted to the downside. There was a sharp move below the $42,000 level. Besides, there was a break below a major bullish trend line with support near $41,250 on the hourly chart of the BTC/USD pair.

Moreover, there was a break below the 50% Fib retracement level of the upward move from the $38,750 swing low to the $42,950 high. Bitcoin is now trading below $41,000 and the 100 hourly simple moving average.

The price is now consolidating above the 61.8% Fib retracement level of the upward move from the $38,750 swing low to the $42,950 high. 

Immediate resistance on the upside is near the $40,750 level. The following key resistance could be $40,950, and to start a strong upward move, the price must settle above the $41,000 zone and the 100 hourly simple moving average. If the bulls succeed, the price could rise towards the $41,800 resistance zone.

Bitcoin Trims Gains: More Losses in BTC?

If bitcoin fails to clear the $41,000 resistance zone, it could continue to move down. Immediate support on the downside is near the $40,250 level.

The next significant support is seen near the $40,000 level. A downside break below the $40,000 zone could send the price towards the $39,250 support zone.100 hourly simple moving average.

Technical Indicators:

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

Major Support Levels – $40,250, followed by $40,000.

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

Major Resistance Levels – $40,750, $41,000 and $41,800.

Related: Is it wise to buy Bitcoin during Dip?

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