Bitcoin Price Takes Major Hit But Uptrend Far From Over – Here’s Why

Bitcoin price started a major drop below $44,000 after rumors of spot ETF rejection. BTC dived over 10%, but the bulls are still protecting the $40,000 support.

• Bitcoin declined heavily and even spiked below the $40,000 level.
• The price is trading below $43,500 and the 100 hourly Simple moving average.
• There was a break below a key bullish trend line with support near $43,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a fresh increase if there is a close above the $43,500 resistance zone.

Bitcoin Price Dives Over 10%

Bitcoin price struggled to gain pace for a move above the $46,000 resistance level. BTC found a strong selling interest and then rumors of spot ETF rejection hit market.

It sparked bearish moves and the price tumbled below the $44,000 level. There was a break below a key bullish trend line with support near $43,200 on the hourly chart of the BTC/USD pair. The pair declined over 10% and even spiked below the $40,000 support.

A low was formed near $39,500 and the price started a recovery wave. There was a move above the $41,500 and $42,000 levels. There was a wave above the 50% Fib retracement level of the downward move from the $45,913 swing high to the $39,501 low.

Bitcoin is trading below $43,500 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $43,200 level. The first major resistance is $43,500 or the 61.8% Fib retracement level of the downward move from the $45,913 swing high to the $39,501 low.

Source: BTCUSD on TradingView.com

A close above the $43,500 level could send the price further higher. The next major resistance sits at $44,400. Any more gains above the $44,400 level could open the doors for a move toward the $45,000 level.

Fresh Decline In BTC?

If Bitcoin fails to rise above the $43,500 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $42,000 level.

The next major support is near $41,300. If there is a move below $41,300, the price could gain bearish momentum. In the stated case, the price could drop toward the $40,500 support in the near term.

Technical indicators:

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

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

Major Support Levels – $42,000, followed by $41,300.

Major Resistance Levels – $43,200, $43,500, and $44,000.

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.