Bitcoin started a downside correction and traded below $42,000 against the US Dollar. BTC must stay above $40,000 to avoid a trend reversal.
- Bitcoin started a fresh decline below the $43,000 and $42,000 levels.
- The price is trading below $43,000 and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $42,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might correct further, but the $40,000 support is the key.
Bitcoin Price Breaks Support
Bitcoin price failed to stay above the $43,000 support zone. BTC extended decline and traded below the $42,500 support level.
There was a move below the 23.6% Fib retracement level of the key increase from the $37,030 swing low to $45,350 high. Besides, there was a break below a major bullish trend line with support near $42,500 on the hourly chart of the BTC/USD pair.If the price stays above the $41,200 support, it could attempt a fresh increase. On the upside, an initial resistance is near the $42,000 level. The first key resistance is near the $42,500 level and the 100 hourly simple moving average.
Source:A clear move above the $42,500 resistance might set the pace for a fresh increase. In the stated case, the price could surpass the $43,000 resistance zone. The next major resistance for the bulls may possibly be near the $44,200 level.
