Bitcoin Price Consolidates Losses, Why 100 SMA Is The Key To Recovery

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Bitcoin price is struggling below the $43,500 resistance zone. BTC could start another decline if it stays below the 100 hourly SMA.

  • Bitcoin price started a major decline from the $49,000 resistance zone.
  • The price is trading below $43,250 and the 100 hourly Simple moving average.
  • There is a key declining channel forming with resistance near $43,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a fresh decline if it stays below the $43,250 resistance zone.

Bitcoin Price Turns Red

Bitcoin price started a major decline from the $49,000 resistance zone. BTC traded below the $46,500 and $45,000 support levels to enter a short-term bearish zone.

The bears even pushed the price below the $42,500 support zone before the bulls appeared. A low was formed near $41,476 and the price is now consolidating losses. It recovered a few points above the $42,000 level. The price tested the 23.6% Fib retracement level of the key drop from the $49,000 swing high to the $41,476 low.

Bitcoin is now trading below $43,250 and the 100 hourly Simple moving average. There is also a key declining channel forming with resistance near $43,050 on the hourly chart of the BTC/USD pair.

On the upside, immediate resistance is near the $43,000 level and the channel zone.  The first major resistance is $43,250 or the 100 hourly Simple moving average. A clear move above the $43,250 resistance could send the price toward the $44,450 resistance.

Bitcoin Price

Source: BTCUSD on TradingView.com

The next resistance is now forming near the $45,250 level. It is near the 50% Fib retracement level of the key drop from the $49,000 swing high to the $41,476 low. A close above the $45,250 level could start a strong increase and send the price higher. The next major resistance sits at $47,000.

More Losses In BTC?

If Bitcoin fails to rise above the $43,250 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $42,120 level.

The next major support is $41,500. If there is a close below $41,500, the price could gain bearish momentum. In the stated case, the price could drop toward the $40,000 support in the near term.

Technical indicators:

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

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

Major Support Levels – $42,120, followed by $41,500.

Major Resistance Levels – $43,050, $43,250, and $44,450.

Source: NewsBTC

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