As the digital currency market continued to decline, the price of Bitcoin fell below $ 40,000. The price has now recovered somewhat, and if Bitcoin can break the $ 42,500 resistance, there is a possibility of further price growth.
to the Report Bitcoin failed to break the $ 43,500 and $ 43,650 resistance yesterday, and traders started a new downtrend under the support of $ 42,000.
The new downtrend was accompanied by a fall below $ 40,200 and $ 40,000 support. Buyers then pushed the price up to $ 39,579 before the uptrend began. The price is now above $ 40,000 and $ 41,000, however, Bitcoin is still trading below the $ 43,000 level and the 100-hour moving average (SMA).
A few hours ago, Bitcoin was able to overcome the resistance level of 50% of Fibonacci correction. In this analysis, Fibonacci levels are adjusted based on the downward movement of the price from $ 43,624 to the bottom of $ 39,579. The price is currently below the resistance level of $ 42,500.
In the 1-hour Bitcoin / Dollar market view, a key downtrend has formed in the $ 42,500 resistance range. This downtrend line is near the 76.4% Fibonacci retracement level. As mentioned, Fibonacci levels are set based on the downward movement of the price from $ 43,624 to the bottom of $ 39,579.
Buyers must first break through the $ 42,500 resistance in order to recover. The next key resistance is in the range of $ 43,000, and crossing this level can pave the way for the price to reach the $ 45,000 resistance.
If Bitcoin fails to break the $ 43,000 resistance, a new downtrend could begin. In the event of a downtrend, the closest support is at $ 41,600.
The next key support is in the range of $ 41,000, and breaking this level could cause the price to fall to the level of $ 40,000 or even $ 39,500. Continuing the downtrend could push the price of Bitcoin to $ 38,500 in the medium term.
The MACD is slowly entering the uptrend and the Relative Strength Index (RSI) is below 50.
As mentioned, $ 41,000 and $ 40,000 are key supports for Bitcoin, and $ 42,500, $ 43,000 and $ 45,000 act as price resistance.