Bitcoin (BTC) Breaks Vital Support; Why It Might Dive Under $40K

  • BTC traded beneath a vital support region of $42.5K.
  • Bitcoin wavers beneath $42.5K and 100-hour Simple Moving Average.
  • BTC’s hourly chart indicates a crucial bearish trend-line developing with the resistance of $42.2K (Kraken data feed).
  • The pair might fall further if Bitcoin fails to rise above $42.8K.

Bitcoin triggered a new drop from levels above $44,000. The crypto violated the vital support at $42,500, and now, it seems vulnerable to more downtrends.

BTC Price Extends Downswings

Bitcoin saw its price failing to overcome the resistance of $45.5K and launched a massive downside move. The world’s dominant crypto hovered beneath the support of $43.2K and $42.2K, moving into a near-term bearish territory.

Moreover, Bitcoin ensured a close under $42.5K and 100-hour SMA. The coin formed a low near $41,573, and BTC consolidates losses now. The nearest resistance stands around $42K. Meanwhile, the initial massive resistance is at $42.2K.

Apart from that, the BTC’s 1-hour chart highlights a crucial bearish trend-line emerging with resistance around $42.2K. The following vital resistance might be $42.5K or 23.6% Fibonacci retracement zone of the downward move from $45.9 swing high to $41,573.

The primary resistance looks to form around $42,850 or 100-hour Simple Moving Average. A decisive move past 100-hours SMA might send BTC higher to $43,750. The level stands near the 50% Fibonacci retracement mark of the latest plummet to $41,573 from $45,900.

More Plummets in Bitcoin?

Bitcoin’s failure to launch a new upsurge beyond $42,850 might attract continued downward movements. The closest support will showcase around $41.6K. The following massive support sits near $41.2K. A break under this footing will mean new declines for the price, exploring the vital value areas at $40K.

For now, Bitcoin needs a significant push past $42.8K to avoid more declines. That would necessitate lucrative market sentiment across the crypto spectrum. Also, buyers may need to step up to catalyze upward actions.

BTC Technical Indicators

  • 1-hr MACD gains pace inside bearish region.
  • 1-hr RSI stays beneath 50-mark
  • Crucial support areas – $41.6K, then $41.2K
  • Crucial resistance areas – $42.2K, $42,850 and $43K