Bitcoin Price Analysis: BTC Takes Hit To Trim Gains, $40K Is The Key

Table of Contents

Bitcoin price started a downside correction from the $45,000 zone against the US Dollar.
The price is now trading below $43,000 and the 55 simple moving average (4 hours).
There was a break below a major bullish trend line with support near $43,500 on the 4-hour chart of the BTC/USD pair (data feed from Coinbase).
The pair could start a fresh increase if it stays above the $40,450 support zone.

Bitcoin price is correcting lower below $43,000 against the US Dollar. BTC might eye another increase if the bulls remain active above the $40,000 zone.

Bitcoin Price Analysis

Bitcoin price extended its increase above the $40,000 level and rallied toward the $42,000 resistance zone. A high was formed near $45,000 before the price started a downside correction. There was a clear move below the $43,500 and $43,000 levels.

The bears were able to push the price toward the 50% Fib retracement level of the upward move from the $37,612 swing low to the $45,000 high. Besides, there was a break below a major bullish trend line with support near $43,500 on the 4-hour chart of the BTC/USD pair.

It is now trading below $43,000 and the 55 simple moving average (4 hours). However, the bulls are now active near the $40,500 support. Immediate resistance on the upside is near the $42,000 level.

The next major resistance might be near the $43,000 zone and the 55 simple moving average (4 hours). A clear move above the $43,000 level might send the price toward $44,500, above which the price might rise toward the $45,000 level. Any more gains might push the price toward the $46,500 zone.

If there is no upside break, the price might continue to decline below the $41,000 level. The first major support is $40,500 or the 61.8% Fib retracement level of the upward move from the $37,612 swing low to the $45,000 high.

The next key support is near the $39,350 level, below which the price might accelerate lower. In the stated case, the price could decline toward the $38,500 level. Any more losses might send the price toward the $36,000 level.

Looking at the chart, Bitcoin price is clearly trading below $43,000 and the 55 simple moving average (4 hours). Overall, the price could start a fresh increase if it stays above the $40,500 support zone.

Technical Indicators

4 hours MACD – The MACD is now losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.
Key Support Levels – $40,500 and $39,350.
Key Resistance Levels – $42,000, $43,000, and $45,000.