Bitcoin Price Rejects $43.5K, Why BTC Could Plunge in the Short Term

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Bitcoin price attempted to make another upside break above the USD 43,500 resistance. BTC failed and corrected lower to test the USD 41,800 support zone.

  • Bitcoin corrects gains from the $43,500 resistance zone.
  • The price is trading above $42,000 and the 100 hourly Simple Moving Average.
  • A connecting bearish trendline is forming with resistance near $42,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could continue to fall if there is a move below the $41,650 support.

Bitcoin price drops again

Bitcoin price quickly rose above the USD 42,000 resistance zone. BTC even climbed above the USD 43,000 level but faced a strong rejection near USD 43,500. It seems that the price has once again failed to cross the $43,500 zone.

A high was formed around $43,464 and the price started falling again. There was a move below the USD 42,800 and USD 42,500 support levels. The price even peaked below the 50% Fib retracement level of the upward wave from the $40,514 swing low to the $43,464 high.

Bitcoin found support near the $41,800 level. It is now trading above $42,000 and the 100 hourly Simple Moving Average. The price is also stable above the 61.8% Fib retracement level of the upward wave from the $40,514 swing low to the $43,464 high.

On the upside, immediate resistance is around the $42,600 level. A connecting bearish trendline is also forming with resistance around $42,600 on the hourly chart of the BTC/USD pair.

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Bitcoin price

Source: BTCUSD on TradingView.com

The first major resistance forms around $43,000. The main resistance is still near the $43,500 zone. A close above the resistance at $43,500 could trigger a steady rise. The next major resistance could be near USD 44,500, above which BTC could rise towards the USD 45,000 level.

Lose more in BTC?

If Bitcoin fails to rise above the USD 42,650 resistance zone, it could continue to decline. The immediate downside support is near the USD 42,000 level.

The next major support is near $41,650. If there is a move below $41,650, there is a risk of more losses. In the mentioned case, the price could fall towards the USD 40,500 support in the short term.

Technical indicators:

Hourly MACD – The MACD is now gaining speed in the bearish zone.

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

Major support levels – USD 42,000, followed by USD 41,650.

Major resistance levels – $42,650, $43,000 and $43,500.

Disclaimer: The article is for educational purposes only. It does not represent NewsBTC’s views on buying, selling or holding investments and of course investing involves risks. You are advised to conduct your own research before making any investment decisions. Use the information on this website entirely at your own risk.

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