Bitcoin Price Analysis: BTC At Risk of Extended Downside Correction

• Bitcoin price started a downside correction from the $44,400 zone against the US Dollar.
• The price is now trading below $43,200 and the 55 simple moving average (4 hours).
• There is a key bearish trend line forming with resistance near $43,000 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 $40,500 support zone.

Bitcoin price is correcting lower below $43,200 against the US Dollar. BTC might eye another increase if the bulls remain active above the $40,500 zone.

Bitcoin Price Analysis

Bitcoin price extended its increase above the $42,000 level and rallied toward the $45,000 resistance zone. A high was formed near $44,424 before the price started a downside correction. There was a clear move below the $43,500 and $43,200 levels.

The bears were able to push the price toward the 50% Fib retracement level of the upward move from the $40,508 swing low to the $44,424 high. The price even spiked below $42,000.

Bitcoin is now trading below $43,200 and the 55 simple moving average (4 hours). There is also a key bearish trend line forming with resistance near $43,000 on the 4-hour chart of the BTC/USD pair. Immediate resistance on the upside is near the $42,850 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 $44,400, 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 $41,500 level or the 76.4% Fib retracement level of the upward move from the $40,508 swing low to the $44,424 high. The first major support is $40,500.

The next key support is near the $40,000 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.

Bitcoin Price

Looking at the chart, Bitcoin price is clearly trading below $43,200 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 – $41,500 and $40,500.

Key Resistance Levels – $42,850, $43,000, and $44,450.

The post Bitcoin Price Analysis: BTC At Risk of Extended Downside Correction appeared first on Live Bitcoin News.